There are two chart patterns that’ll help you spot the exact moment to strike when the market changes direction. Knowing these two patterns will help you make maximise profits.
Spot which way the markets headed using these simple chart patterns
The two chart patterns are double tops and triple tops.
They are both reversal chart patterns that signal when the trend has completely changed from a down trend to an uptrend and vice versa.
These are very common, reliable chart patterns that you can use to trade any time frame with great success.
So what does a double top chart pattern look like?
I’ve drawn two black lines showing you the two peaks of the double top. This is a bearish reversal chart pattern and signals the price is going to fall further. Usually the support line for the double top is a previous resistance line but that’s not the case in the chart above.
Once the support line has been broken, it’ll sometimes test it before resuming its fall lower. WE use these kinds of patterns often in Pattern Profit Alerts.
The opposite of a double top is a double bottom this is when there’s a bullish breakout, meaning markets are going up!
Use the triple top to know exactly when to strike on a trend reversal for quick profits!
The triple top trend reversal gives a strong signal the trend has changed.
This is a double top that failed to break through the support line. It then bounces and forms a third peak before finally falling through the support line.
The price behaves exactly as it does with a double top chart pattern. As you can see in the chart once the price broke through the support levels it moved back to the broken support level that’s now a resistance level. The opposite of the triple top is the triple bottom and it’s a bullish reversal pattern.
With the stock markets are see-sawing, a change in trend is often near. You must keep an eye out for these chart patterns. When you spot one forming, make sure you don’t miss the profit opportunity that follows. And remember you can use these patterns on any time frame charts.
If you like the idea of trading using charts but are eager to learn more, then sign up to Pattern Profit Alerts for detailed pattern research and analysis on stocks both local and offshore.
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