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How to Trade Double Tops and Bottoms

It looks so simple when you look at it for the first time. Two tops or two bottoms at the same price levels and that gives a clear signal. But it’s never that easy and that’s why we decided to make this tutorial.

Trading expert David Jones walks us through this, seemingly basic chart configuration, but shows us the wrong turns along the way. Patterns like this one aren’t hard to find but they are rare. And even when it does comply with the definition of what a double top or bottom is – it still can pan out in an unexpected way. Or take its sweet time in developing as per expectations.

These are the main things to keep in mind when entering and closing trades based on double tops and bottoms – patience and discipline. Patience for allowing the setup to form all of its components, followed by an entry that doesn’t jump the gun. Then comes the discipline to wait the right amount of time to make an exit.

We’ve got real market examples to show why these things are as important as simply identifying what looks like a sure-fire chart setup.

Got questions and comments – tell us below.

At Trading 212 we provide an execution only service. This video should not be construed as investment advice. Investments can fall and rise. Capital at risk. CFDs are higher risk because of leverage.

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