￼A double peak is a form of trade that was formed after there has been a re-ascent. The peaks are formed when price hits’ a certain level, which can’t penetrate. After the failure at this level, the price will bounce back a bit, and then will go back to again try to pass that level. If the price down again at that level, then you have a double peak. You can see that the two peaks formed after a strong upward trend. You may notice that the second peak could not penetrate the height of the first peak. It is a strong sign that will appear crafts, because it tells us that the buying pressure at the end.
Double bottom is also the formation of turning the trend, but this time we will open the purchase order, rather than for sale. These formations occur after an extended downtrend when forming two valleys or bottom. You can see from the graph above that, after the previous downward trend, price formed two valleys because she could not go below certain level. You may also notice that the second bottom could significantly penetrate the level of the first floor. This is a sign that the sales pressure almost finished, and there will be a turnaround.
￼￼￼￼The symmetrical triangle formation on the chart where the line of the highest prices and lowest price lines converge together to the point where they look like a triangle. During this formation happens that the market produces lower peaks and higher bottoms. This means that neither buyers nor sellers are not pushing prices far enough to achieve a clear trend. If this is the usual battle between buyers and sellers, this is a draw. This type of activity is called consolidation.
On the chart above we can see that neither buyers nor sellers have failed to push the price in their direction. When this happens we will get lower peaks and higher bottoms. When the two slopes come closer to one another, it is expected to break-out. We do not know in what direction, but we know it will come to the break out. In the end, one side will surrender. So how would we be able to take advantage of this situation? Easy. We can set tasks above the line and below the top of the lower line of a higher bottom. Since we know that the price will break through, we can easily set tasks regardless of market direction.
As you probably guessed, the drop-down triangles are exactly the opposite of an ascending triangle. In descending triangles there are a number of lower peaks that make up the top line. The lower line is the support that the price can’t penetrate. See that in order to gradually lower price points, which tell us that sellers are now receiving battles as opposed to buyers. In most cases, the price will break the line support and will continue to fall. However, in some cases support line is too strong, so the price will bounce and strong will to progress upwards.
The good news is that we do not care where the price goes. We only know that it will go somewhere. In this case, we set the tasks above the upper line (lower peaks) and below the line support. This formation occurs when there is a level of resistance and higher bottom line. It will happen that will be a certain price level that buyers cannot move. However, they gradually started to push prices up, as evidenced by a higher bottom. That customers are now receiving power, because they’re a higher bottom. They keep the pressure on the level of resistance and as a result, a break out will happen.
The question is in which direction? Will buyers be able to break the resistance level or will be stronger? Most books will tell you the price will break through the line of resistance. However, in my experience so far, this is not always the case. Sometimes the resistance level is so strong, that just is not there enough power with the buyers to push through price line. I want to be ready to move in both directions. In this case, I would make an order above the resistance line and below the line higher bottom.