Double Bottom Reversal Oil Trading Strategy

Double Bottom Reversal Crude Oil Trading Strategy

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

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

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

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

Summary:

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

Oil Down Trend Reversal Trading Strategy – Double Bottoms Reversal Oil Trading Strategy

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

Double Bottoms Oil Trend Reversal Oil Trading Strategies