REVERSAL CHART PATTERNS
DOUBLE TOP
It is a reversal pattern in an Uptrend, where market creates exactly two tops on the same price level.
There are 2 types of Double top
1) Traditional Double Top
If each top gap is within 9 months, then it is called “Traditional Double Top”.
2) Cyclic Double Top
If each top gap is more than 9 months (or) If the time taken to form each top is more than 9 months, then it is called as “Cyclic Double Top”.
How to Trade Double Top?
If you saw a double top in the chart, wait for the confirmation of breakout at the recent low level.
After breakout confirms at the recent low level, You can enter into the trade.
The Minimum Double Top Target should be the same as the distance of the previous high to low as shown in the image
DOUBLE TOP
It is a reversal pattern in an Uptrend, where market creates exactly two tops on the same price level.
There are 2 types of Double top
1) Traditional Double Top
If each top gap is within 9 months, then it is called “Traditional Double Top”.
2) Cyclic Double Top
If each top gap is more than 9 months (or) If the time taken to form each top is more than 9 months, then it is called as “Cyclic Double Top”.
How to Trade Double Top?
If you saw a double top in the chart, wait for the confirmation of breakout at the recent low level.
After breakout confirms at the recent low level, You can enter into the trade.
The Minimum Double Top Target should be the same as the distance of the previous high to low as shown in the image