Home for all Chart Traders: This site will teach you how to trade Chart Patterns, via articles about trading, Money Management, Patterns, and more!

Explained Trade: Double Bottom Aggressive Entry

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Double Top at GBP\JPY, 1-Hour Chart

A very precise Double Top pattern is in final stages of pullback in the Pound-Yen currency pair. A breakout has already occurred and price is now performing a pullback to the neckline that was broken. Also note that neckline is a strong psychological level which empowers its neckline role.

Indicators: How To Trade with Bollinger Bands

Developed by John Bollinger, The Bollinger Bands is one of the most popular technical indicators. In this indicator I will describe its strengths and weeknesses and show you the ways to use it.

Calculation
The Bollinger Bands consist of 3 bands:

  • Middle Band - A 20-period Simple Moving Average of close price.
  • Upper Band - Middle Band, plus two standard deviations.
  • Lower Band - Middle Band, substracted two standard deviations.

+80 Pips | USD\CAD Trade Update

USD\CAD Short trade has already gained +1% on Equity from the entry point. I hope you took it also.
Note that price has touched the lower Bollinger Band. That could signal a short-term exhaustion of trend, until the lower band is broken by price.

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