In this video, you will learn how to trade the double top and the double bottom pattern in forex trading. For example, look at the GBP/USD chart. By placing a horizontal line on these highs, you can see that this is a double top pattern. The market encounters resistance two times at this level. It indicates that a trend reversal is likely. You can enter a short position here with your stop-loss above these highs. As you can see, the price now reverses to the downside. You can also draw a trendline and wait for the break of the trendline for additional confirmation.
Look at another example. Placing a horizontal line below these lows, you can see that this is a double bottom pattern. Price touches this level twice before reversing to the upside. You can take a long position with your stop-loss below the lows. You can wait for the break of a downtrend line for additional confirmation.