Bollinger Bands Stocks Trend Reversals

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

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

Double Bottoms Stocks Trend Reversals

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

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

Double Bottoms - Bollinger Bands Stocks Trend Reversals Trading Strategy Using Double Bottoms Chart Patterns

Double Tops Stocks 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 stocks price high., then after a while another stocks price high is formed, and this time it is below the upper Bollinger band.

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

Double Tops - Bollinger Bands Stocks Trend Reversals Trading Strategy Using Double Tops Chart Patterns