Double Top and Double Bottom XAUUSD Strategies

A XAUUSD trader should wait for the gold price to turn in the opposite direction after touching one of the xauusd Bollinger bands before considering that a xauusd reversal is happening.

Even better a xauusd trader should see the gold price cross over the moving average.

Double Bottom XAUUSD Trend Reversals

A double bottoms is a buy signal setup. Double tops occurs when price action penetrates the lower Bollinger band then rebounds forming the first gold price low, then after a while another gold price low is formed, & this time it is above the lower Bollinger band.

The second gold price low must not be lower than the first one and it important is that the second gold price low does not touch or penetrate the lower Bollinger band. This bullish gold trading setup is confirmed when the price action moves & closes above the middle band (simple moving average).

Double Bottom – Bollinger Bands XAUUSD Trend Reversals Strategy Using Double Bottoms Patterns

Double Top XAUUSD Trend Reversals

A double top is a sell signal setup. Double tops occurs when price action penetrates the upper Bollinger band then rebounds down forming the first gold price high., then after a while another gold price high is formed, & this time it's below the upper Bollinger band.

The second gold price high must not be higher than the first one and it important is that the second gold price high does not touch or penetrate the upper Bollinger band. This bearish gold setup is confirmed when the price action moves & closes below the middle band (simple moving average).

Double Top – Bollinger Bands XAUUSD Trend Reversals Strategy Using Double Tops Patterns