Wednesday, January 28, 2009

Double Bottom

EUR/GBP, 1H, 9 Jan - 16 Jan 2009

This is a beautiful double bottom reversal that took more than a week to form fully. Double bottoms are a type of reversal pattern that may occur after a big downtrend. Upon forming two troughs, a subsequent breach of the peak (ie the resistance level) between both troughs gives enough upwards momentum for tables to be turned and fortunes to be made.

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