The Double Top and Bottom Pattern forex indicator for MT4 scans and displays double top and double bottom reversal chart patterns on the Metatrader 4 chart.
The indicator draws the reversal chart pattern on the chart and displays the accompanying buy or sell arrow.
- A blue buy arrow suggests a double bottom chart pattern has been completed and it’s time to buy the pair
- A red sell arrow suggests a double top chart pattern has been completed and it’s time to sell the pair
For buy signals: place a protective stop-loss a few pips below the low of the double bottom chart pattern.
For sell signals: place a protective stop-loss a few pips above the high of the double top chart pattern.
Free Download
Download the “double-top-bottom-patterns.ex4” MT4 indicator
Indicator Chart (EUR/USD H4)
The EUR/USD 4-Hour chart below displays the Double Top and Bottom Chart Pattern Metatrader 4 Forex indicator in action.
Basic Trading Signals
Signals from the Double Top and Bottom Chart Pattern MT4 forex indicator are easy to interpret and go as follows:
Buy Signal: Open a buy trade when a blue arrow appears on the chart. This is a double bottom chart pattern.
Sell Signal: Open a sell trade when a red arrow appears on the chart. This is a double top chart pattern.
Trade Exit: Use your own method of trade exit.
Double Top and Bottom + Super Alligator Signal MT4 Forex Strategy
This MT4 strategy is designed to capture intraday reversals and trend continuation moves using pattern recognition and trend confirmation.
The Double Top and Bottom Pattern Indicator signals potential reversals with blue arrows for bottoms, indicating buy opportunities, and red arrows for tops, indicating sell opportunities.
The Super Alligator Signal Indicator confirms trend direction with red arrows showing a buy trend and blue arrows showing a sell trend.
This strategy works well on M5, M15, and M30 time frames.
It is ideal for day traders who want structured entries based on clear reversal signals that align with the overall trend.
Combining pattern signals with trend confirmation increases the accuracy of intraday trades and reduces the risk of false entries.
Buy Entry Rules
- Super Alligator Signal shows a red arrow indicating a buy trend
- The Double Top and Bottom Indicator shows a blue arrow signaling a bottom
- Enter a buy trade at the open of the next candle after both conditions appear
- Place a stop loss below the recent swing low or pattern low
- Close the trade when a blue arrow from the Super Alligator turns to blue or a red arrow appears from the pattern indicator
Sell Entry Rules
- Super Alligator Signal shows a blue arrow indicating a sell trend
- The Double Top and Bottom Indicator shows a red arrow signaling a top
- Enter a sell trade at the open of the next candle after both conditions appear
- Place a stop loss above the recent swing high or pattern high
- Close the trade when a blue arrow from the Super Alligator turns red or a blue arrow appears from the pattern indicator
Advantages
- Combines pattern recognition with trend confirmation for reliable entries
- Buy/sell arrows make it easy to spot trade signals quickly
- Works well across multiple intraday time frames
- Helps capture both reversals and trend-following moves
- Trend confirmation helps avoid counter-trend trades
Drawbacks
- Pattern signals can be less accurate during sideways or low volatility markets
- Trend arrows may lag slightly in fast-moving markets
- Requires attention on intraday time frames for accurate entries
Case Study 1
On EURUSD M15, the Super Alligator Signal showed a red arrow indicating a buy trend.
The Double Top and Bottom Indicator generated a blue arrow signaling a bottom at 1.1020.
A buy trade was entered at 1.1022 with a stop loss at 1.1008 below the recent swing low.
Price moved up to 1.1055, hitting resistance and closing the trade for 33 pips.
The alignment of trend and reversal signal resulted in a precise and profitable trade.
Case Study 2
On GBPJPY M5, the Super Alligator Signal turned blue, indicating a sell trend.
The Double Top and Bottom Indicator showed a red arrow at 162.80 signaling a top.
A sell trade was executed at 162.77 with a stop loss at 163.00 above the recent swing high.
Price dropped to 162.40 reaching support and closing the trade for 37 pips.
Using pattern and trend together allowed for an accurate intraday scalp.
Strategy Tips
- Focus on trades where the pattern signal aligns clearly with the trend for higher accuracy
- Combine with support and resistance levels to improve entry and exit points
- Look for confluence with candlestick patterns to increase confidence in the trade
- Consider trading only during high-volume sessions for stronger price moves
- Monitor multiple time frames to ensure the trend on higher time frames matches the intraday setup
- Adjust your trade size based on volatility to protect your capital
- Use partial exits if the trend continues strongly beyond the first target
Download Now
Download the “double-top-bottom-patterns.ex4” Metatrader 4 indicator
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: Chart pattern indicator
Customization options: Variable (amplitude; breakout period, display alerts) Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Type: double top | double bottom
