Gold Trading Down Trend Reversal Strategy

Double Bottoms Reversal Strategy

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

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

In Gold, Double bottoms down gold trend reversal trading strategy formation is an early warning gold signal that the bearish Gold trend is about to reverse.

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

Summary:

• Double bottoms down gold trend reversal strategy forms after an extended move downward
• This Double bottoms down gold trend reversal trading strategy formation indicates that there will be a reversal in the xauusd market
• We buy when price breaks out above neck-line point: see below for an explanation.

Gold Trading Down Trend Reversal Gold Strategy - Double Bottom Reversal Strategy

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

Double Bottoms Gold Trend Reversal Gold Trading Strategies