Title
RSI Double Top Double Bottom
Element(s)
  • RSI (8)

Buy signal

On a downward trend if market enters Oversold condition, when RSI line goes below level 30, if RSI line forms a Double Bottom below level 30 whenever it crosses this level toward top then Buy signal will be generated.

The peak of Double Bottom pattern must not touch or cross level 30.

  • Entry Price: Over High Price of the candlestick that forms on the spot that RSI line crosses Level 30 completely toward top
  • Take Profit: Equivalent to distance between High Price of given candlestick to last price valley, over Entry Price
  • Stop Loss: Below last price valley

Sell signal

On an upward trend if market enters Overbought condition, when RSI line goes over level 70, if RSI line forms a Double Top over level 70 whenever it crosses this level toward bottom then Sell signal will be generated.

The valley of Double Top pattern must not touch or cross level 70.

  • Entry Price: Below Low Price of the candlestick that forms on the spot that RSI line crosses Level 70 completely toward bottom
  • Take Profit: Equivalent to distance between Low Price of given candlestick to last price peak, below Entry Price
  • Stop Loss: Over last price peak

RSI Double Top Double Bottom

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