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A double top is a price pattern used in technical analysis where two equivalent tops exist. The trader should create short position after price goes below the neck line.
Conditions-
- Two equivalent tops should be identified.
- min duration should be 20 days.
- higher volume either at the second top or when it crosses the neck line.
Double Top is the pattern with two equivalent top.
Duration between the two tops should be minimum of 20 days.
Volume at the second top or at the neck line should be high.
The double top is a pattern where 2 equivalent tops are formed in the duration of 20 days to 1 months time
Conditions
1. Two equivalent tops to be identified
2. Minimum duration 20 days
3. High volume in the second top around the neckline
4. The trader should go short if the price goes below the neckline
when a two equivalent tops appears in minimum 1 month period while taking account of only major tops and bottoms it is identified as double top. now if the price pattern brakes the previous bottom line the trend is called as bearish trend and we can make short position.
A double top is a term used in technical analysis to describe the rise of a stock, a drop, another rise to the same level as the original rise, and finally another drop.
Volume should be high in the neck line of the second top.Duration between the two tops should be minimum 20 days.
Short position can be considered below previous low.
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