Technical analysis: Double top pattern

Double top pattern

The Double Top pattern is an easily recognizable reversal pattern. This pattern is usually formed near the resistance level and signals a situation on the market when the price fails to break the resistance line two times in a row.

The Double Top pattern is an easily recognizable reversal pattern. This pattern is usually formed near the resistance level and signals a situation on the market when the price fails to break the resistance line two times in a row. Below you can see a picture of the Double Top pattern.

Importantly, the second top on the picture is slightly lower than the first one which is an obvious signal that the resistance level will not be broken and the price will surely reverse. Traders are better to enter the market when the price is located at the second top or at the level of the neck line.

Let’s see what further developments we may see:

The amplitude of a decline usually equals the height of the Double Top pattern. Experienced traders say that these patterns are better to be found only after really strong trends. For example, in the sluggish sideways market such figures are of no importance. Moreover, such patterns are usually found on bigger time frames starting from 1 hour.

Actual patterns

Double Top
was formed on 06.06 at 10:30:10 (UTC+0)
signal strength 3 of 5

Corak pembalikan Double Top telah dibentuk pada NZDJPY M30. Ciri-ciri: sempadan atas %P0.000000; sempadan bawah 86.98; sempadan bawah 86.53; lebar corak adalah 47 mata. Dagangan menjual adalah lebih baik untuk

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Double Bottom
was formed on 06.06 at 10:00:09 (UTC+0)
signal strength 3 of 5

Corak Double Bottom telah dibentuk pada AUDCAD M30. Pembentukan ini menandakan pembalikan aliran dari aliran menurun ke atas. Isyarat ialah perdagangan membeli harus dibuka selepas sempadan atas corak 0.8882 telah

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Double Top
was formed on 05.06 at 19:00:08 (UTC+0)
signal strength 3 of 5

Pada carta #MA M30 corak pembalikan Double Top telah terbentuk. Ciri-ciri: sempadan atas 586.60; sempadan bawah 582.27; lebar corak 433 mata. Isyarat: penembusan sempadan bawah akan menyebabkan kesinambungan arah aliran

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