In general about pattern
Looking at the charts give the traders’ information in which direction the chart is moving in.
If the price increases to a level and falls to a lower level and start again to rise to a higher level; the trader expects the price to fall when the price reaches a certain level.
Reverse are the traders expecting the price to rise if the price level is falling to a certain level and rising to a higher level and falling to a certain level.
The traders have also information about how much they expect the price to fall and rise if the patterns are a described.
Double top
The double top pattern is when the price move’s from a lower point to a higher point and reverses to a lower point and starts to rise and fall as the image illustrates; the pattern is first ended when the price reaches point E.
The traders expect as a minimum the price will fall the difference between D and E as the image illustrates.
The double bottom pattern is when the price move’s from a higher point to a lower point and reverses to a higher point and starts to fall and rise as the image illustrates; the pattern is first ended when the price reaches point E.
The traders expect as a minimum the price will increase the difference between D and E as the image illustrates.
