Below are the conditions looked for to confirm double top:
- Duration for double top “A” and “B” formation is more than a month
-
Volume is high at the neckline “C”
3.Ā Short position is considered
Double top:
Resistance: 795
SupportĀ Ā : 684
Entry price: sell below 684
Stop LossĀ : 795
TargetĀ Ā Ā : 573
Hi,
The Double top pattern is a reversal trading pattern that signals the end of a bullish trend and the start of a new bearish trend. Moreover, the double top appears at the end of an uptrendā¦ In the above chart, the top A is not qualified because the prior trend seems like a range-bound marketā¦ To qualify as a reversal pattern, there must be a prior trend to reverse. Additionally, The Double top has a minimum duration of 20 days and it rarely exceeds 3 or 4 months long. Anything less than 20 days of duration doesnāt act as a double top pattern.
please find the attached screenshot for your reference