In this analysis, the theory of double top is explained with the help of a chart as given above. In this analysis, the formation of double top happens during the period from September 2017 to October 2017. The volume in the second highest peak is supported by good volume. Hence we can conclude that it forms the pattern of double top during this period and the appropriate stop loss, target price and the entry price where the trader has to create a short position by entering into the market at Rs 463.10. The stop loss is the point of the second highest peak which is estimated to be around Rs 542, and the target price assuming the risk taken by the trader is equal to the reward taken should be around Rs 384.20 which is the price at which the seller has to square off his position by buying the stock to make profit. If we observe carefully the two tops are distinctly marked separately which can also be called as the resistance levels are essential in the formation of the Double Top shape.
, , Double Top
