A double-top pattern is a technical chart pattern that occurs when a stock or asset reaches a high price twice and then reverses its trend. This pattern is formed when the price of an asset rises to a certain level, falls back, and then rallies back to the same level before falling back again. This creates two peaks on the chart that are approximately the same height. The double-top pattern is often seen as a bearish signal, as it suggests that the asset's upward momentum has stalled and may be poised to reverse.
When the double top pattern is combined with a high volume breakout and a break of the trendline, it can be a particularly strong signal that the asset is likely to continue its downward trend. A high-volume breakout occurs when the price of an asset breaks through a significant level of resistance with a large amount of trading volume. This indicates that there is a significant amount of buying or selling pressure behind the move.
A trendline is a line that connects the highs or lows of an asset's price over a period of time. When the price of an asset breaks through a trendline, it is often seen as a significant signal that the trend has changed.
So, if a gold chart shows a double top pattern, along with a high volume breakout and a break of its trendline, it suggests that the upward trend in gold has stalled and that the asset is likely to continue its downward trend. Traders and investors may take this as a bearish signal and may look for opportunities to sell gold or short the asset.
When the double top pattern is combined with a high volume breakout and a break of the trendline, it can be a particularly strong signal that the asset is likely to continue its downward trend. A high-volume breakout occurs when the price of an asset breaks through a significant level of resistance with a large amount of trading volume. This indicates that there is a significant amount of buying or selling pressure behind the move.
A trendline is a line that connects the highs or lows of an asset's price over a period of time. When the price of an asset breaks through a trendline, it is often seen as a significant signal that the trend has changed.
So, if a gold chart shows a double top pattern, along with a high volume breakout and a break of its trendline, it suggests that the upward trend in gold has stalled and that the asset is likely to continue its downward trend. Traders and investors may take this as a bearish signal and may look for opportunities to sell gold or short the asset.
Trade active:
Entry1: Tapped
Trade closed: target reached:
TP1: HIT
Trade closed: target reached:
Both TP's Hit Trade Closed :)
