Double top and bottom pullbacks candlesticks
The double top pullbacks candlestick pattern is formed when the market prices rise,
but upon reaching the previous resistance levels, the market prices are unable to go past through
(there is no breakout); this occurs twice hence the name double. On the other hand a double bottom pullback pattern
is formed when market prices drop, but upon reaching the previous support, the market prices are unable to go lower
(there is no breakdown); this occurs twice hence the name double.
As a trader, when there is a double top pullback pattern, you should place a sell once the support level
is passed and when there is a double bottom pullback, you should place a buy if the resistance level is passed.
Trading range reversals candlesticks
Trading the range reversal candlesticks pattern requires that you first identify the specific range
that you are dealing with. In most cases, a range will be bounded by a support and a resistance level.
So, after identifying the range, you are then able to easily identify any reversal that occurs.
When a range reversal occurs, it will probably move to the middle of the range.
So when placing an order in relation to a range reversal, you should place your target in the middle of the range
or if not, somewhere just above the middle of the range. At the same time,
it is also important to use stop loss levels which should be at a distance half that of your take profit.