NEO How to Trade

Double top chart pattern can give a trend reversal signal if the price breaks the signal level of this pattern and moves lower. As we can see there was an attempt to break this level, but the market came back above 28.80 level. What does it mean? It means that the double top chart pattern was not realized as a trend reversal pattern and we could be ready to see a new upward movement to 37.00 level. We could buy above 31.00 level, but based on signals from Ichimoku indicator and DMI, the market is bearish and it has potential for moving lower. If the market drops below 28.80 level, we'll get confirmation of downward movement. Double top pattern will be confirmed. Target zone for the falling market will be the zone between 20.00 and 18.00 levels. This zone will be good for buying based on reversal signals. Alternative variant: the price bounces from 28.80 levels and moves upward. For confirmation the uptrend and buying, the market will have to passes through the cloud of Ichimoku indicator. If DMI allows opening long trades, we'll be able to buy above 34.50 level. Now, it's better to watch for price action and wait for clear tradign signals.