The double cap is an inversion pattern formed after an upward movement. “Spikes” are spikes that occur when the price reaches a certain level that can not be broken.
After reaching this level, the price will increase slightly, but will then return to test the level again. I
If the price rebounds from this level, then you have a double UP!
In the previous table, forex candlestick patterns you can see that two peaks or “peaks” have formed after a strong upward movement.
Notice how the second upper part could not break the maximum of the first top part.
This is a strong signal that a reversal will occur because it tells us that buying pressure is coming to an end soon.With twice the cap, we would put our entry below the limit because we expect the bullish trend to reverse.
If you look at the table, you can see that the price interrupts the cut and makes a good downward move.
Keep in mind that double caps are a trend reversal formation, so you should look for them as soon as a strong uptrend occurs.
You will also notice that the fall is about the same height as the upper double formation.
Remember, because this can be useful for setting profit goals.
The raised floor is also a trend reversal, but this time we want Long instead of Short.
These formations appear after a prolonged links post downward trend when two valleys or “bottoms” have been formed. The previous chart shows that the price after the previous downtrend formed two valleys because it could not fall below a certain level. Note that the second background could not significantly break the first background. This is a sign that sales pressure is coming to an end soon and that a reversal of the trend is imminent.
The price broke the neckline and made a forex indicators good upward movement. See how the price climbed almost to the same height as the double end result? Keep in mind that double floors as well as double covers are trend reversal formations.