Forex Trading Trend Patterns - The Double Top

A double top is a type of Forex trading reversal patterns. A double top is recognized like so:

• - First you see a long rise in currency price.
• - This rise is followed by a top and a small drop, and a bottom.
• - Then another small rise appears.
• - The double top Forex trading pattern is complete when another top is formed and the currency starts to drop again.

The last drop of the reversal pattern is a long one, and it indicates the trader to either liquidate the currency he already has, or perform a sell order for the bid price.

The quick recognition of this 'M' shaped trend pattern can help your investment, and can justify the saying 'forex trading made easy'.

Double tops usually don’t appear as perfect 'M's, but over time these trend patterns are easily recognized as the more basic Forex trading trends are.
Tania Raven, Market Analyst