The invention of the Internet has brought about many changes in the way that we conduct our lives and our personal business. We can pay our bills online, shop online, bank online, and even date online!

We can even buy and sell Stocks online. Traders love having the ability to look at their accounts whenever they want to, and brokers like having the ability to take orders over the Internet, as opposed to the telephone.

Most brokers and brokerage houses now offer online trading to their clients. Another great thing about trading online is that fees and commissions are often lower. While online trading is great, there are some drawbacks.

If you are new to investing, having the ability to actually speak with a broker can be quite beneficial. If you aren’t stock market savvy, online trading may be a dangerous thing for you. If this is the case, make sure that you learn as much as you can about trading Stocks before you start trading online.

You should also be aware that you don’t have a computer with Internet access attached to you. You won’t always have the ability to get online to make a trade. You need to be sure that you can call and speak with a broker if this is the case, using the online broker. This is true whether you are an advanced trader or a beginner.

It is also a good idea to go with an online brokerage company that has been around for a while. You won’t find one that has been in business for fifty years of course, but you can find a company that has been in business that long and now offers online trading.

Again, online trading is a beautiful thing – but it isn’t for everyone. Think carefully before you decide to do your trading online, and make sure that you really know what you are doing!

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What is a Double Bottom Chart Pattern?

 A Double Bottom is a reversal pattern that happens at the height of a downward slope and can indicate the commencing of an up trend.

How Do I Recognize a Double Bottom Chart Pattern?

A double bottom chart pattern takes place in four steps:

1. A new low for price is reached 
2. The price finds support and rises to a new high, creating a new resistance point
3. The price commences to move back down to support, but then rises again towards resistance
4. The price breaks through resistance, building an upward trend

What Does a Double Bottom Chart Pattern Mean?

A double bottom chart pattern can signify a tug of war between buyers and sellers. As sellers attempt to push the contract, buyers resist the down trend. When once again the bottom of the pattern isn’t broken, the sellers begin to back off, leading the buyers to dominate and send the price up.

Watch the new up trend, as it may drop back down to the breakout point to test the new support.

Big W

 Note that a similar chart pattern is the Big W, which has all the principles of a Double Bottom, but with much steeper moves.

George Kissi

Simple Day Trading Techniques

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Double Top Chart Pattern

What is a Double Top Chart Pattern? A double top is a reversal pattern that occurs at the peak of an upward trend and can mark the beginning of a downward trend.

How Do I Recognize a Double Top Chart Pattern?

A double top chart pattern occurs in four stages:

1. Price reaches a new high
2. The trend faces resistance and sells off to support.
3. The price begins to move back to resistance, but another sell off occurs, meeting support again.
4. The price falls below support, establishing a downward trend

What Does a Double Top Chart Pattern Mean?

A double top chart pattern can point to a tug of war between buyers and sellers. While buyers try to push the contract, sellers resist the upward trend. When once again the top of the pattern isn’t broken, The buyers begin to back off, leading the sellers to dominate and send the trend downward.

Watch volume in this scenario, as it is likely to increase once the contract is below support. This support level may now become a new resistance level in the new trend.

Note that a similar chart pattern is the Big M, which has all the principles of a Double Top, but with much steeper moves.

George Kissi

Simple Day Trading System

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