Hello Traders,
I’m watching the Cash100 for a potential double top that could set up a short opportunity. Price is currently making higher highs while RSI is making lower lows — a clear sign of weakening buying momentum, also known as negative RSI divergence.
As further confluence, we have the FOMC tomorrow, and markets often prefer to de-risk ahead of such events. Also, there is a rising wedge on the S&P500 on the hourly chart and the chance that there is also a potential double top on the 30min timeframe.
✅ Conditions before entry:
- 30min candle must close within the range and at the correct level
- The closing candle must meet my required closure rate
- Ideally, volume should be lower (though I’ll allow an exception given it will be the U.S open)
- RSI should confirm with another divergence
📊 Trade Plan:
Risk/Reward: 2.9
Entry: 24,385.1
Stop Loss: 24,418.6
Take Profit 1 (50%): 24,290
Take Profit 2 (50%): 24,271
💡 GTradingMethod Tip:
Patterns like double tops are powerful, but they’re strongest when combined with momentum divergence. Always confirm multiple factors before entering.
🙏 Thanks for checking out my post!
Follow me for the next update and feel free to share your thoughts below — I’d love to hear them.
📌 Please note: This is not financial advice. This content is to track my trading journey and for educational purposes only.
I’m watching the Cash100 for a potential double top that could set up a short opportunity. Price is currently making higher highs while RSI is making lower lows — a clear sign of weakening buying momentum, also known as negative RSI divergence.
As further confluence, we have the FOMC tomorrow, and markets often prefer to de-risk ahead of such events. Also, there is a rising wedge on the S&P500 on the hourly chart and the chance that there is also a potential double top on the 30min timeframe.
✅ Conditions before entry:
- 30min candle must close within the range and at the correct level
- The closing candle must meet my required closure rate
- Ideally, volume should be lower (though I’ll allow an exception given it will be the U.S open)
- RSI should confirm with another divergence
📊 Trade Plan:
Risk/Reward: 2.9
Entry: 24,385.1
Stop Loss: 24,418.6
Take Profit 1 (50%): 24,290
Take Profit 2 (50%): 24,271
💡 GTradingMethod Tip:
Patterns like double tops are powerful, but they’re strongest when combined with momentum divergence. Always confirm multiple factors before entering.
🙏 Thanks for checking out my post!
Follow me for the next update and feel free to share your thoughts below — I’d love to hear them.
📌 Please note: This is not financial advice. This content is to track my trading journey and for educational purposes only.
Order cancelled
Setup invalidated.RSI has reached 45 and according to my system it has "reset".
No longer looking for a double top here.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.