This leads to the markets quickly turning around and thus establishing the support or resistance levels. We know that support is where demand is overwhelming and resistance is where supply is overwhelming. When there are two consecutive sessions that fail to break the support or resistance level, it results in the DBHLC or the DBLHC patterns. It should be fairly evident by now that you can use the DBHLC and the DBLHC to identify when a support or a resistance level holds.

This will give you the early edge to anticipate a turnaround in price. So the first step is to identify the support and levels. Once the price levels are drawn out on chart, you simply wait for the DBHLC or the DBLHC to be formed.

Combining the support and resistance levels and trends, you can also use the DBHLC and DBLHC to trade within the direction of the trend. The double high lower close is a two candle pattern. As the name suggests, there should be double highs. The highs need to be close to each other. The second candlestick should close lower than the first candlestick. Double Bar High Lower Close Candlestick Formation.

In the above example you can see the double high lower close method in action. Here, price action posts a high. The second high is not that evident but it is close. Following this high, price closes lower. A short position is taken at the open of the next candlestick session with a target of two times the risk. Price action evidently slips as expected to hit the target. The double low higher close is a two candle pattern. There are two double lows formed close to each other. The Double Top pattern can occur in both shorter and longer timeframes.

As the double top is formed at the end of an uptrend, the prior trend should be an uptrend. Traders should spot if two rounding tops are forming and also note the size of the tops.

Traders may only look to enter the short position when the price break out from the support level or the neckline. For the double top pattern to be confirmed, the trend must retrace more significantly than it did after the initial retracement following the first peak.

Often, this means that the price momentum breaks through the neckline level of support, and the bearish trend continues for a medium or long period of time. The double top is a type of chart pattern that is an indication that the prevailing trend may reverse, in the short or long term. The double top is a common occurrence towards the end of a bullish market. The price formation looks like two peaks that occur after one another. The Double Top Pattern can be used on your trading platform charts to help filter potential trading signals as part of an overall trading strategy.

The Double Top pattern requires a complete understanding of the trading patterns. Although hard to identify, it can give possible entry and exit points into the market. If you are looking to trade forex online, you will need an account with a forex broker. If you are looking for some inspiration, please feel free to browse my best forex brokers.

I have spent many years testing and reviewing forex brokers. IC Markets are my top choice as I find they have tight spreads, low commission fees, quick execution speeds and excellent customer support. Self-confessed Forex Geek spending my days researching and testing everything forex related. I have many years of experience in the forex industry having reviewed thousands of forex robots, brokers, strategies, courses and more.

I share my knowledge with you for free to help you learn more about the crazy world of forex trading! Read more about me. Skip to content Forex Brokers Forex Courses Forex Robots Forex Signals Forex Systems Forex Tools Forex Trading.

However, we wish to warn you that these are just the ways which have worked in the past. Although, there is a good chance for the history to repeat, there are no guarantees. So, your destiny is in your hands. It is the long haul. Open a savings account in the currency which bears higher interest rate.

As the rate of interest accumulates steadily and the power of compound interest kicks in, you see your money double in a few years. Divide the value of 72 with the expected annual rate of return. The result is the number of years required to double your money. The tricky part here is that higher interest rate currencies usually have high inflation rates. So, it will depreciate the value of the currency as well. Hence, if you choose a major currency with a solid interest rate, you are bound to succeed.

However, if you are a US citizen, the savings account method will not be a wise choice. Since the US dollar pares down the gain in interest rate by appreciating in value against your currency over the course of time. On the contrary, if you are a non-US citizen, then opening a savings account in the States would be a smart choice. You can have a double bonanza. The interest rates at the US are close to zero and are projected to skew north in the coming years.

Also, the value of the US dollar is resilient in tough times and usually appreciates in the due course. Though the process of opening a savings account in the US has become tedious off-late , it is certainly worth the effort. Buy a currency pair in low quantity and hold it for the long-term.

The Double Bar High Lower Close and its opposite, the Double Bar Low Higher Close are two candlestick patterns. These patterns, although a bit rare to occur can signal potential change of direction in the market.

The double bar high lower close DBHLC and the double bar low higher close DBLHC can be used to trade the markets in the short term. Because these are price action patterns, they are valid across any time frame. However, remember that you need to book profits quickly in order to truly take advantage of these price action patterns. The two patterns are not just technical patterns but come on the back of market psychology. It is after all traders moving prices around.

Think about it for a moment. Buyers or sellers attempt to push price higher or lower respectively and fail. This leads to the markets quickly turning around and thus establishing the support or resistance levels. We know that support is where demand is overwhelming and resistance is where supply is overwhelming. When there are two consecutive sessions that fail to break the support or resistance level, it results in the DBHLC or the DBLHC patterns.

It should be fairly evident by now that you can use the DBHLC and the DBLHC to identify when a support or a resistance level holds. This will give you the early edge to anticipate a turnaround in price. So the first step is to identify the support and levels. Once the price levels are drawn out on chart, you simply wait for the DBHLC or the DBLHC to be formed. Combining the support and resistance levels and trends, you can also use the DBHLC and DBLHC to trade within the direction of the trend.

The double high lower close is a two candle pattern. As the name suggests, there should be double highs. The highs need to be close to each other. The second candlestick should close lower than the first candlestick. Double Bar High Lower Close Candlestick Formation. In the above example you can see the double high lower close method in action.

Here, price action posts a high. The second high is not that evident but it is close. Following this high, price closes lower. A short position is taken at the open of the next candlestick session with a target of two times the risk.

Price action evidently slips as expected to hit the target. The double low higher close is a two candle pattern. There are two double lows formed close to each other. The second candlestick should close higher. After the second candlestick closes, you can then go long on the open of the next third candlestick. Double Bar Low Higher Close Candlestick Formation. The above chart illustrates the DLHC method.

You can see the first low being formed and the candlestick also closes bearish. Following this, the next candlestick also makes a low, close to the previous candlestick. But this time, price action closes higher. Once the DLHC is confirmed, you can then take a long position. In the above example, we have the target placed to with the stops at the low of the second candlestick. The DHLC and DLHC methods are quite unique to price action traders.

While this is not a strategy on its own, the beauty of DHLC and DLHC is that you can combine this with other technical indicators. You can trade off support and resistance levels or even using moving averages and trade in the direction of the trend. Remember that the DHLC and DLHC can get a bit subjective. Sometimes you will find that the highs or lows are not quite close but you can see a follow through.

The best way to get familiar with this price action pattern is to practice and understand the larger context of the market. All you need is to have your live account verified! Of course, you need to open a live account USD30 from each Forex Broker Below.

Both Forex Brokers have excellent rating! Broker 1. Broker 2. Save my name, email, and website in this browser for the next time I comment. Share Tweet Share Email Whatsapp Print. The Sky Is Not the Limit. Broker 1 Broker 2 We use both of these brokers and proudly promote them! NOTE: Not all countries qualify for these bonuses. Terms and Condition Applies.

Other Analysis Today. Learn and SHARE the Knowledge! This might also interest you Click Here to Leave a Comment Below 0 comments. Leave a Reply: Save my name, email, and website in this browser for the next time I comment. Leave this field empty.

It should be fairly evident by now that you can use the DBHLC and the DBLHC to identify when a support or a resistance level holds. Unable to push price back below this previous low, sellers give up and more buyers come into the market, so prices begin to rise back to resistance. It is the long haul. Both Forex Brokers have excellent rating! All you need is to have your live account verified!

Categories:

• Forex Bitcoin
• Binary Options
• Forex Brokers
• Binary Options online
• Forex