Trading Double Top & Double Bottoms Oil Trading Strategies

A trader should wait for the crude oil price to turn in the opposite direction after touching one of the oil Bollinger bands before considering that a oil reversal is happening.

Even better a trader should see the crude oil price cross over the moving average.

Double Bottoms Oil Trend Reversals

A double bottom is a buy oil trading signal set-up. Double top forms when crude oil price action penetrates the lower Bollinger band then rebounds forming the first crude oil price low, then after a while another crude oil price low is formed, and this time it's above the lower Bollinger band.

The second crude oil price low must not be lower than the first one and it important is that the second crude oil price low does not touch or penetrate the lower Bollinger band. This bullish crude trading setup is confirmed when the crude oil price action moves and closes above the middle band (simple moving average).

Double Bottoms - Bollinger Bands Oil Trend Reversals Trading Strategy Using Double Bottoms Crude Trading Chart Patterns

Double Tops Oil Trend Reversals

A double top is a sell oil trading signal set-up. Double top forms when crude oil price action penetrates the upper Bollinger band then rebounds down forming the first crude oil price high., then after a while another crude oil price high is formed, and this time it is below the upper Bollinger band.

The second crude oil price high must not be higher than the first one and it important is that the second crude oil price high does not touch or penetrate the upper Bollinger band. This bearish crude trading setup is confirmed when the crude oil price action moves and closes below the middle band (simple moving average).

Double Tops - Bollinger Bands Oil Trend Reversals Trading Strategy Using Double Tops Crude Trading Chart Patterns