hello traders its a samurai trader here welcome to this training session
in this session I'm going to be discussing trading double tops and
double bottoms double tops and double bottoms can occur with both trading with
the trend and counter trend and can be an extremely profitable strategy to trade
now day and swing trading is really a pattern solving exercise using trend
lines in your trading and recognising and learning how to trade patterns can help
catch the really big moves but what's really important that you realize is
that there's a lot of different types of patterns so what I'm doing is creating a
series of recordings that I'll be emailing out to you discussing various
setups such as ascending and descending triangles will be discussing wedges wolf
waves and a number of other extremely profitable trading strategies but we'll
start with double tops and double bottoms because it's one of the easiest
to learn and one of the most profitable so as we get into this video I do need
to put the risk disclaimer up if you're new to my channel or if you've kept
seven what's one of my many videos for a long time I recommend you stop the
recording and read the risk disclaimer now as we get underway this video is
actually being posted for the benefit of the public and I may have a number of
members actually watching this video as well so members if you're watching the
video if you go and log into the members area you'll actually see that I've
created them some extremely comprehensive powerpoints and I've been
there for some time so you may have already watched these and let me just
find it here for you where is the double top and double bottom I'm gone right
before me there it is there are DMA we've got that many powerpoints they get
a little oh so if you go in there traders you'll be able to download the
PowerPoint and also if you go and log in to the trading strategies videos the
videos are recorded to tune you how to trade the strategy or in the excel
sheets and one more thing in the trading ebooks
action I have three or four excellent books here on trading patterns I'd
recommend that you are studied now with that being said traders it's very very
easy to become overwhelmed and I recommend that you start with one
pattern learn how to trade it master it own it before you move on for next to
the next one because I'm going to be teaching your over series of videos
seven or eight outstanding patterns that will dramatically improve your bottom
line but it's very important that you start with one and build from there
otherwise what happens is you really become overwhelmed and as they say jack
of all trades master of none likewise in learning patterns spend the
time and I'd recommend you start with double tops and double bottoms because
as you see it's not an exact science they're easy to learn but repair
profitable now very quickly I don't turn this into a big advertisement but if you
haven't already subscribed to my youtube channel please do visit my website to
request off up to free ebooks now if you're new to my channel and of course
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let's get into this so double tops and double bottoms I'm not going to read all
of this because I want to get to the chance where you can visually explain it
to you but a double top or bottom is a reversal chart pattern which is defined
when price finds resistance or support at a particular level there are traces
then makes a second attempt to break through only to file and fall to fourth
that fall away I should say now the market loves to testings twice and
what happens is once a tested test that test twice and it's rejected quite often
you'll get an explosive move back in reverse so it can be just a great
strategy to learn and I'm not going to go through and read every word as I
mentioned here because we'll look at the charts and I can explain it a lot easy
if you want to of course just just pause the video but I do want to show you the
Charts and then we'll go to look at some live charts from yesterday from last
night's trading so very it's very very simple we can see here that prices come
up and hit resistance it's tested at once gone up and tested twice now a lot
of traders will then say ok it's gone up there to have a sell stopping down at
your last swing low traders you give that all of that profit there's a lot of
profit can be given now we may call it an aggressive entry but using one of the
day traders fast-track strategy entries we can get in here very very early and
very successfully now I've got Danny high probability one surprise supports
brakes support well that's questionable I really like to get in up here and many
other traders many professions would say exactly the same thing so very very
simple you got the resistance up again we would have an entry up here or if you
do want to be conservative you can jump in here now here I'm
showing some examples some older charts that actually had on trading the forex
market it doesn't matter what market you're trading with your days swing or
position trader of stocks futures or Forex the setups are their geometric
setups they set up every day in every market so they just it's just a really
reliable pattern we can see here once again coming down to support so the
other ones with the double top was resistance now without the support so
we've come down tested once tested twice and we would actually be in around this
level here if you wanted to be conservative if you can get in once you
take the high up and if you're trading fractals by the way if you've got a
small swing high there yes that'll be fine but I really like to get in because
by getting in earlier if you if you're like me and you like to put your
stop-loss one or two ticks under the little swing low here the earlier you
get in the smaller your stop-loss is and the larger the target you can set so
that's very very important that you consider that and you'll see this
regularly where you'll get support and resistance so here we're looking at the
15 range of 15 range chart is quite slow now in this particular day you can see
actually it was over what's that yeah bits over a number of days just
looking at the chart time down there but you can see we've come down twice got up
there and tested it twice and fall in a way and as I mentioned it's a really
regular reliable strategy to look at enter trade so let's now go directly
have a chance so I'm going to give you a number of examples here now trading
double tops and double bottoms and in actual fact virtually any pattern in the
market and when you're using trend lines or trading patterns it's not an exact
science and in most cases close enough is good enough and as I say to my
members walks like a duck looks like a duck quacks like a duck it's a duck so
let me just show you this one though this is the day this is a trade actually
that I took last night on gold so what we're looking at here traders is gold
the yellow metal 144 tick and you can see here is right on a pivot level a
floor pivot then I think this was the S1 actually but anyway we can see here it's
not exact it's I call this a flat top but it has the same formation as a
double top it's gone up tested bummed around so some the exact one but I
wanted to show that it doesn't have to be and you can see here one thing I do
like to add is I like to add my I've got a special platinum MACD i've use I called
it a platinum mcd's it's a very sensitive MACD you can see there I've
got my Macd's falling across I entered here that was an $80 move to per
contract two contract it was a nice little trade five on the first eight on
the second now up here later on we then had a double top up here against the one
of our EMA's and that actually also was an $80 move now down here we've come
down with bounced on a pivot we've come up with bounced off the EMA come down
and bounced on the pivot formed T7 there by the way we called double tops and
double bottoms T7's we've got over 12 different strategies so we give them
code names and and by the way if you remember what you missed just remember
the rule if you need of a program master 1-2-3 strategy
as well before you move on to the next one very important so you've got the
double bottom here and the areas here this is a great move okay so you'll find
a lot of these moves you know you'll pick up 15, 20 ticks now on goal that is
of course 150 to $200 per contract now let's go and have a look at another
market it's going to have a look at the CL so if we look at oil here the black
golds we're looking at a 6/10 chart now once again these appear on all markets
and all timeframes so what I want to show you is this let me just scroll this
over for you so you can see here we had a double bottom so come down went back
up there so you actually had an entry you could have gone long here you
actually had divergence once again I love divergence when I've got a double
top double bottom ok so small moved and bounced off the EMA and this is one
of the things that you need to be aware of of course is that when you enter a
double top or a double bottom you've got to consider where is my closest support
or resistance where am I most likely to bounce so our members know that you're
very likely to get a bounce at your major
EMAS which is exactly what happened you then had a ended up having an 89 B right
here so you come down and you tested it again now here there's a 1 tick
difference between this slow and this line now this is really form what we
call a triple bottom 1 2 3 but you know it's it's still exactly the same we've
tested it three times it's been rejected and off it goes it really flies so just
be aware of that when you have a triple bottom or a triple top you can get some
really great moves as you had there at the top here we can see and we had a
standard divergence trade here then we had another great double top here at t7
and a way win now on a standard trading chart so if I'm trading a 144
ticker 233 or small range etc I'll allow up to two ticks higher on either side so
if this a particular top it was two ticks I than
this one that's fine the higher the timeframe the more
lenient I am so let's just say if I'm trading a daily chart and I had this was
five ticks or six ticks sire that would be fine okay close enough it
is good enough it's got exactly the same but what I do want to see I do want to
see divergence which is important to me now let's now go and have a look at a
chart at an NQ chart so this is a 144 NQ chart exactly the same thing
now this if you look down here you got very slight two vergence you can see
it's starting to happen here now what makes this even better is that we've
come down we're bouncing on a major EMA we're bouncing on a floor pivot we've
come down and tried this below twice so there's my double bottom and you know
the ideal double bottoms is maybe when you have seven or eight candles in
between but once again this is fine because there are other things that are
adding to it if you notice our EMA is our major EMA's are in and up uptrend so
this is a double bottom with the trend a very very high probability trade as most
our members know we call it a bit the farm trades because they're just really
great trades now once again when I say that I say it tongue-in-cheek
you always consider your money management rules and up here we then had
a great double top and there's a lot of other things there that make this a
great double top here but one of them here is you've got divergence and let's
go and have a look maybe at the Euro Dollar
so this is the Euro Dollar 89 tick so as day traders of course we trade lower
timeframes so we can see up here we've got some divergence you can see that
there and let me just bring my my pointer back here and so I've got
divergence now this is dropping away now I know it's not two humps or whatever like
you had from say there to there but once again close enough is good enough
because price has gone up tested up again and it's I know you we could argue
on some will argue that's a triple top you know what
enough is good enough it's gone up a number of times and it's trading with
the trend okay if I was to put my anchor chart up you'd see we're screaming down
this is a great double top to trade and of course we had an explosive move when
I say explode we had a great move let me put it this way down here we had another
one okay we had another double top down and then you had a double bottom and
what happened with that one okay I rallied up and you bounced on the EMAs
now remembering you always consider this so where do you pull your stops in or
where do you take profits one thing we teach our members is to be very well
aware of where is your most likely bounce point going to be here in this
case resistance been a major EMA's so you really want to be aware of that and
either pull your stops right in and go to break-even or take your profits or a
part profit and that's really what we teach now here of course you've got to
be aware of if you're taking a trade with the trend you're always going to
watch this so let me just draw this here for you so you can't really see it that
just here is you've got your closest swing low just over here okay so you've
got to be aware that you know you might get ready for a bounce likewise we take
where's my quote into this trade where's my closest when lows here and you
actually bounced off that now what a lot of traders will do is I'll say okay
let's take some of our profits off here and what you can also do and this is
perhaps digressing a little but when you go in these and you know you've got a
major bounce point sometimes you'll see the market will turn before you hit it
so you can front run these bounces by perhaps having a buy order in one or two
ticks above this swing low just to guarantee what you do get filled if it
does bounce at least take partial profits so trade is that is a very quick
rundown on trading double tops and double bottoms it's a very simple
pattern destroyer to trade members is is actually cheat sheets these are
extensive power points in the members area we've got some great ebooks in
there on trading chart patterns along with the the powerpoints and the
recordings there's a ton of stuff there if you're new to my channel or if you
want to come and join us $197 strade is you get lifetime access
you get all of this tons of great stuff like this we've got over 14,000 members
and that's the target is 10,000 within the next two years
we're building a great community of day traders there's no upsell there's no
coaching programs to buy 197 is it so we hope to see you as a member and you're
on my mailing list so expect to receive another recording over the next couple
of days with another set up it'll probably be on descending and ascending
triangles another great strategy for day and swing trading thank you taders see
you on the next recording
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