Commodities Up Trend Reversal Trading Strategy

Double Tops Trading Strategy

Double tops upward commodity trend reversal trading strategy is a reversal commodity pattern that forms after an extended commodity upward trend. As its name implies, this reversal strategy is made up of two consecutive peaks that are roughly equal, with a moderate trough in between.

Double tops upward commodity trend reversal trading strategy is considered complete once commodities price makes the second peak and then penetrates the lowest point between the highs, called the neckline. The sell commodity signal from this up commodity trend reversal trading strategy occurs when the commodity market breaks below the neckline.

In Commodities, Double tops upward commodity trend reversal trading strategy is used as a early warning commodity signal that a bullish upward commodity trend is about to reverse.

However, Double tops upward commodity trend reversal trading strategy is only confirmed once the neckline is broken and the commodity market moves below the neckline. Neckline is just another name for the last support level formed on the commodities trading chart.

Summary:

• Double tops upward commodity trend reversal trading strategy Forms after an extended move upwards
• This Double tops upward commodity trend reversal trading strategy formation indicates that there will be a reversal in the commodity market
• We sell when commodities price breaks below the neckline; see below for explanation.

Commodities Up Trend Reversal Trading Strategy - Double Top Reversal Commodity Trading Strategy

The double tops look like an M Shape, the best reversal commodity signal is where the second top is lower than the first one as shown on the commodity example illustrated and explained below, this means that the reversal commodity signal can be confirmed by drawing a downward commodity trend line as shown below.

Double Tops Commodities Trend Reversal Commodity Trading Strategies