Double Top Double Bottom Indicator
The best MT4 indicator to spot double top/bottom patterns on MTF charts. Suitable for forex & stock day and intraday trading. Points precise buy-sell positions.
Description
The Double Top Double Bottom is an automatic price-action pattern scanning indicator for MT4. Professional traders consider double top and double bottom patterns as strong trend reversal signals. This pattern usually forms after the price completes a long-term trend-following move and decides to go for a correction. So, technically it works best for swing trading strategies.
The Double Top Double Bottom closely monitors the highs and lows of the price waves. Once the indicator spots a potential buy/sell setup, it shows possible trade entry level, stop-loss, and take-profit zones. This indicator includes a double top/bottom scanner. It allows you to choose your preferred forex pairs and timeframes. You can use it to access the relevant timeframe chart when the indicator detects a potential trade signal.
This interactive trading guide will show you how to spot potential trade setups using the Double Top Double Bottom Demo indicator in MT4.
How to trade forex using the Double Top Double Bottom indicator in MT4
The Double Top Double Bottom indicator works based on a smart price action pattern scanner. Select the scanner, choose your preferred forex pairs and timeframes, and then click “RUN.” Next, the indicator will deploy an MTF switch panel. This tool shows which timeframe chart has printed a double top/bottom pattern. Whenever there is a signal, the indicator changes the color of the timeframe icon. Click on the icon, and you’ll be redirected to the relevant chart.
The indicator highlights the double top and bottom patterns using zig-zag lines. It helps you to understand the root and formation of the trade setup. After detecting a pattern, it’ll show possible buy-sell, stop-loss, and take-profit levels.
For best results, only pick the double top or bottom signals plotted near key support/resistance levels. For instance, a double-top pattern formed right below a solid resistance indicate a strong sell signal.
Conclusion
The Double Top Double Bottom is an essential MT4 indicator for daily price action traders. Its simple and practical demonstration of double top/bottom patterns helps beginners monitor their preferred forex pairs in MTF charts. The best part is that it lets you know which timeframe offers a trade signal without browsing it.