Title
Candlestick on Double Top Double Bottom
Element(s)
- Double Top/Bottom
- Candlestick (Engulfing, Hammer, Piercing Line, Tweezers …)
Buy signal
On a downward trend, when a Double Bottom pattern forms and price crosses its neckline toward top if a powerful Bullish candlestick appears then a Buy signal will be generated.
- Entry Price: Over High price of candlestick pattern
- Take Profit:
- Length of given candlestick over Entry Price
- Half of height of the Double Bottom (H/2)
- Height of the Double Bottom (H)
- Stop Loss: Below Low price of that candlestick pattern
Sell signal
On an upward trend, when a Double Top pattern forms and price crosses its neckline toward bottom if a powerful Bearish candlestick appears then a Sell signal will be generated.
- Entry Price: Below Low price of candlestick pattern
- Take Profit:
- Length of given candlestick below Entry Price
- Half of height of the Double Top (H/2)
- Height of the Double Top (H)
- Stop Loss: Over High price of that candlestick pattern
