what signs show that it will break the 13.38 resistance and not just be a double top? Thanks as always just looking to learn.
UnknownUnicorn1063189
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@Troy_Brave, This is a good question, Troy. Double Tops (bottoms) are probably the most talked about chart patterns but let me just give you my take on "Double Tops".
A top can be resistance, here we have agreement, however, resistance is not resistance until it is CONFIRMED and a Double Top is not a Double Top until it is CONFIRMED.
Let's look at Double Top (DT) confirmation. For this to be a DT it must first bounce down from this recent high and start falling and then produce a lower high. It has not done any of this yet.
Until it does any of this it can at best be called resistance. It, therefore, does not meet the criteria for a Double Top.
Let's look at Resistance confirmation. For resistance to occur it must reject going higher than the most recent high. At this stage, there is no rejection so let us not make any assumptions. We trade what we see NOT what we think.
As the pattern of this trade is above the Ichimoku and the swings are showing higher highs and higher lows on lower time frames there is nothing to prevent it going higher. Whether it will or not the Market will reveal.
Trading is always about playing probabilities, therefore you are risking X to make x. If you actually take this trade you must assess whether it is worth risking your money in terms of probability.
Hope this makes sense.
Sean Vengan
Professional Trader and Trading Educator
SmilieLion
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Hi Sean, are the targets here correct? The graph doesn't have a 2x profit target but rather a 27% profit target.
UnknownUnicorn1063189
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@SmilieLion, Hi my friend, it would need to hit T2 to achieve R:R 2.36:1 Sorry not sure where you get the 27% figure perhaps you could explain?
mightytrader
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@SEAN_VENGAN, He is thinking like I used to: The price of Metal actually doubling. I.e. from $13.50 to $27.50
mightytrader
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I meant $27
UnknownUnicorn1063189
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@mightytrader, Understood. So please share your knowledge with him mightytrader as I share freely so we all learn and advance.
You are getting more knowledgeable so share with newer traders
mightytrader
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@SEAN_VENGAN, @SmilieLion -- Oops! Forgot to tag him. Tagged now. I have to find that post were we discussed RR before... I don't remember which chart it was... If you remember, post the link Sean so he can read our commentary.