Trading_Jazz
Education

Double Top definition & 2618 trade setup ®

FX:EURUSD   Euro / U.S. Dollar
What is a Double top , and how to trade it?!

1. We should see a V shape between the two tops;
2. Look left and search for previous structure and eventual PRZ (price reversal zones);
3. The Highest High from the retest candle, MUST meet the previous Highest Close; (it can go above the HH)
4. The retest candle, MUST CLOSE below the previous Highest Close; (CRUCIAL)
5. Once the price breaks the previous structure, it will give us a confirmation of the double top ;
6. Price must find some support above previous structure;
7. Wait the 61.8% retracement; (It can never happen, indeed, and keep with the free-fall, and that's the risk of not taking this trade aggressively from the real top and wait a confirmation); -I would suggest staying out of the trade if necessary*
8. Sell the 61.8% with one eventual AB=CD basic pattern as target, and eventualy a deep further downward movement (check previous structure for TP targets).

Safe trades ;)
Trading Jazz

Related Ideas

Hi, I find your post very helpful. Can you also explain double bottom, I read variety of opinion on double bottom so it is not clear to me, thanks.
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Very nice
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Hellow thanks for that post bu i have a question & i'm not sure if you can answer.

Actualy on GBPUSD Daily there is a Double bot, And a Double TOP , i could either 2618 one or another, question is how to choice the best setup.

Price is stuck bottom & top it sound like it's ranging but there is 2 Perfect double top & bot. Could you check GBPUSD DAILY and tell me whats up? thanks :)
Reply
Thanks for sharing. Great explanation TJ
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Very nicely done! nice tutorial that matches me and adds value! highly appreciated.
Reply
Very informative post, keep it up!
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Thanks! Great post.
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