How to Commodities Trade a Double Bottoms Commodities Trading Chart Pattern in Commodities

How to Trade the Double Bottoms Commodities Trading Chart Pattern

To learn how to analyze the commodity market using double bottoms commodity chart patterns a trader should first of all learn the technical analysis of double bottoms commodity chart pattern explained in this tutorial.

Double Bottoms Commodity Trading Chart Pattern

Double bottoms commodity pattern is a reversal commodity pattern which forms after an extended downward commodities trend.

Double bottoms commodities pattern is made up of two consecutive troughs which are roughly equal, with a moderate peak between the two troughs.

Double bottoms commodity chart patterns formation is considered complete once commodities price makes the second low and then penetrates the highest point between the lows, called the neckline.

The buy commodity signal from this double bottoms market bottoming out commodity signal occurs when the commodity market breaks-out the neckline to the upside.

In Commodities, the double bottoms commodity chart pattern is an early warning commodity signal that the bearish commodities trend is about to reverse.

Double Bottoms Commodities Trading Chart Pattern is only considered complete/confirmed once the neckline is broken. In this double bottoms commodity chart patterns formation the neckline is the resistance level for the commodities price. Once this resistance is broken the commodity market will move up.

Summary:

• Double bottom commodity chart pattern forms after an extended move downward - commodities trading downwards trend
• This Double bottoms commodity pattern formation indicates that there will be a reversal in the commodities trading market
• We buy when commodities price breaks-out above neckline: as described on the commodity example illustrated and explained below.

Commodities Trade a Double Bottoms Commodities Trading Chart Pattern in Commodities?

The double bottoms commodity chart pattern look like a W Shape commodity chart pattern, the best reversal commodity trading signal is where the second bottom is higher than the first bottom as shown and illustrated below.

This means that the reversal commodity signal from the double bottom commodity chart pattern can be confirmed by drawing an upward commodity trend line as shown below. If a trader opens a buy commodity signal the stop loss will be placed just below this upward commodity trend line.

How to Trade the Double Bottoms Commodities Trading Chart Pattern - How Do I Analyze a Double Bottoms Commodities Trading Chart Patterns