Double Bottom/Top patterns- Recent Examples

I wanted to follow up on the USD Double bottom post with some very simple Daily examples. All of these examples were setups that I followed or traded over the past year or so. I am showing these not to pat myself on the back, but to illustrate how effective these patterns are as a risk/reward entry. Study some of these and learn the best way to enter these trades. I enter on a Daily close back below the double top/double bottom level or after a clear Daily reversal candle. Confirmation is key. Learn to sell into an emotional extreme and you place the odds in your favour. 

S&P 500 Daily: November 2010
This trade lead to a 50 point fall into the moving averages

S&P 500 Daily Diversified Banks: February 2011:
This setup was one of the major reasons why I turned cautious/bearish in the middle of February, posted here: 
http://marketletters.blogspot.com/2011_02_17_archive.html

EURUSD Daily: January 2011

Natural Gas Daily April Futures: March 2011
My firm and I traded this 2 weeks back

Bombay Sensitive Weekly: November 2010

These setups materialise time and time again on all time frames. Markets begin new trends once they have "tested" a previous climatic low or high point. It is only once we have failed to move higher/lower that a new trend begins. Great risk/reward setups that you can throw away very quickly if there is no follow through. Now study the EURUSD and DXY setups once more and ask yourself how you can trade this setup to the best of your ability

Thanks
Austin