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

To interpret the double tops commodity chart patterns a trader needs to first learn about the technical analysis of double tops commodity chart patterns explained below.

Double Tops Commodity Trading Pattern

Double tops commodity pattern is a reversal commodity chart pattern that forms after an extended upward commodities trend.

As its name implies, this double tops commodity chart pattern formation is made up of two consecutive peaks on the commodities chart that are roughly equal, with a moderate trough in between the 2 peaks.

Double tops commodity chart pattern formation is considered complete once commodities trading price makes the second peak and then penetrates the lowest point between the highs, called the neckline.

The sell commodity signal from this double tops commodity chart pattern formation occurs when the commodity market breaks-out below the neck line.

In Commodities, this double tops commodity chart pattern is used as a early warning signal that a bullish commodities trend is about to reverse.

However, double tops commodity chart pattern is only confirmed once the neck line is broken & the commodity market moves below the neckline.

Neck Line is just another name for the last support level formed on the Commodities chart.

Summary:

• Double tops commodity chart pattern forms after an extended move upwards- upwards commodity trend
• This double tops commodity pattern signal indicates that there will be a reversal in commodity market trend
• We sell when commodities trading price breaks out below the neck line: as described on the commodity example illustrated and explained below.

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

Double tops commodity chart pattern look like an MShape pattern, the best reversal commodity signal from the double tops commodities trading pattern is where the second top is lower than the first top as illustrated below:

This means that the reversal commodity signal can be confirmed by drawing a downward commodity trend line as shown below. If a trader opens a sell commodity trade using this double tops reversal commodity signal the stop loss will be placed just above this downward commodity trend line.

How to Trade the Double Tops Commodities Chart Pattern - How Do I Analyze a Double Tops Commodities Trading Chart Pattern in Commodity Trading