What Does a Double Bottoms Commodities Trading Chart Pattern Mean?
Double bottoms commodity chart pattern is a reversal commodity chart pattern that forms after an extended downward commodities trend.
Double bottoms commodity chart pattern is made up of two consecutive troughs that are roughly equal, with a moderate peak in between the two troughs.
The buy commodity signal from this double bottoms commodity chart pattern market bottoming out commodity signal occurs when the commodity market breaks 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 bottoms commodity chart pattern forms after an extended move downwards - commodity downwards trend
- This Double bottoms commodity chart pattern formation indicates that there will be a reversal in the commodity market
- We buy when commodities price breaks above the neckline; as explained on the commodity example illustrated and explained below.
What Does a Double Bottoms Commodities Trading Chart Pattern Mean?
The double bottoms commodity chart pattern look like a W Shape commodity chart pattern, the best reversal commodity signal is where the second bottom is higher than the first bottom as shown below.
This means that the reversal commodity signal from the double bottoms commodity chart pattern can be confirmed by drawing an upward commodity trend line as shown below. If a commodity trader opens a buy commodity signal the stop loss will be placed just below this upward commodity trend line.
What Does a Double Bottoms Commodities Trading Chart Pattern Mean? - What Happens To Commodity Trading Price Action After a Double Bottoms Commodities Trading Chart Pattern in Commodity Trading
