Bollinger Bands Trend Reversals - Trading Double Tops and Double Bottoms Index Strategies
A trader should wait for the price to turn in the opposite direction after touching one of the Index Bollinger band before considering that a Index reversal is happening.
Even better one should see the price cross over the moving average(MA).
Double Bottoms Trend Reversals
A double bottoms is a buy signal setup. Double tops occurs when Index price action penetrates the lower band then rebounds forming the first price low, then after a while another price low is formed, & this time it's above the lower band.
The second price low must not be lower than the first one and it important is the second price low does not touch or penetrate the lower band. This bullish Index setup is confirmed when the price action moves and closes above the middle band (simple moving average).
Double Bottoms - Bollinger Bands Trend Reversals Strategy Using Double Bottoms Pattern
Double Tops Trend Reversals
A double top is a sell signal setup. Double tops occurs when Index price action penetrates the upper Bollinger band then rebounds down forming the first price high, then after a while another price high is formed, & this time it's below the upper band.
The second price high must not be higher than the first one and it important is the second price high doesn't touch or penetrate through the upper band. This bearish Index setup is confirmed when the price action moves and closes below the middle band (simple moving average).
Double Tops - Bollinger Bands Trend Reversals Strategy Using Double Tops Pattern
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