Commodities Down Trend Reversal Trading Strategy

Double Bottom Reversal Strategy

Double bottom down commodity trend reversal strategy is a reversal commodity pattern which forms after an extended commodity down commodities trend. Double bottoms down commodity trend reversal trading strategy is made up of 2 consecutive troughs which are roughly equal, with a moderate peak between.

Double bottom down commodity trend reversal trading strategy formation is considered complete once commodities price makes the second low and then penetrates the highest point between the lows, called the neck-line. The buy indication from this bottoming out signal occurs when the commodity market breaks-out the neckline to the upside.

In Commodities, Double bottom down commodity trend reversal strategy formation is an early warning commodity signal that the bearish commodities trend is about to reverse.

Double bottom down commodity trend reversal trading strategy is only considered confirmed once the neck-line is broken. In this Double bottoms down commodity trend reversal trading strategy formation the neck line is the resistance level for the commodities price. Once this resistance is broken the commodity market will move up.

Summary:

• Double bottom down commodity trend reversal strategy forms after an extended move downward
• This Double bottom down commodity trend reversal trading strategy formation indicates that there will be a reversal in the commodities trading market
• We buy when commodities price breaks above the neckline point: see below for explanation.

Commodities Down Trend Reversal Strategy - Double Bottoms Reversal Strategy

The double bottom reversal pattern looks like a W-Shape, the best reversal commodity signal is where the second bottom is higher than the first one as displayed below, this means that the reversal can be confirmed by drawing an upward commodity trend line as shown below.

Double Bottoms Commodities Trend Reversal Commodity Trading Strategies