Candlestick on Double Top Double Bottom - Neckline Breakout
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:
    1. Length of given candlestick over Entry Price
    2. Half of height of the Double Bottom (H/2)
    3. 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:
    1. Length of given candlestick below Entry Price
    2. Half of height of the Double Top (H/2)
    3. Height of the Double Top (H)
  • Stop Loss: Over High price of that candlestick pattern

Candlestick on Double Top Double Bottom

Copyright © 2011-2017 PFOREX.COM | Professional Forex School | Cashback and Rebates