Double Tops and Double Bottoms

Double tops and double bottoms are some of the most common price reversal patterns in the foreign exchange market. These M or W shaped patterns appear on a regular basis on anything from 15 minute charts to weekly studies. The basic double top price pattern has three stages: the price makes a short-term swing high; it is then followed by a slight retracement; then the price makes another attack on the swing highs. Double bottoms have the same rules only reversed. For a more detailed explantion on this type of currency trading check out this article at Surefire Trading.