Chart Pattern: Double Top and Double Bottom

In previous posts I have written about chart pattern; in this post is the double top and double bottom illustrated. The patterns are common patterns.

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.    

Double bottom
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.