Bollinger Bands Trend Reversals

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

Even better a trader should see the stock trading price cross over the moving average.

Double Bottoms Trend Reversals

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

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

Double Bottoms - Bollinger Bands Trend Reversals Strategy Using Double Bottom Patterns

Double Tops Trend Reversals

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

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

Double Tops - Bollinger Bands Trend Reversals Strategy Using Double Top Patterns