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Your Questions About Forex Blogspot The following Question and Answer is brought to you by our Forex Consultant with interaction from members of the Yahoo Answers community.

Richard asks…

Forex Trading – What is a double top and double bottom? Do you know what is a double top and double bottom? I have posted my theory at Do you agree with it?

admin answers: DOUBLE TOP term used in technical analysis to describe the rise of a stock, a drop, another rise to the same level as the original rise, and finally another drop. ///The double top looks like the letter “M”. The twice touched high is considered a resistance level. DOUBLE BOTTOM A charting pattern used in technical analysis. It describes the drop of a


stock (or index), a rebound, another drop to the same (or similar) level as the original drop, and finally another rebound//The double bottom looks like the letter “W�. The twice touched low is considered a support level. Most technical analysts believe that the advance off of the first bottom should be 10-20%. The second bottom should form within 3-4% of the previous low, and volume on the ensuing advance should increase. I suggest you go right to the source..cause there are some charts that will help you understand this theory better Good Luck. Mia

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