What is Double TOP? What are their conditions to determine the bearish trend?

[Ramanathan Chidambaram]

Identify equivalent Tops

Duration should be minimum 1 month

Volume should be high at second Top or while crossing “Neck Line” (in the bearish trend)

[subbu]

Double top conditions for bearish:

1) Two equivalent top.

2) Volume at second top or neckline should be high.

3) Duration between two tops should be minimum twenty days.

[Sakunthala]

Double top is the chart tends to identify the bearish price trend with two tops.

Conditions:

Two equivalent tops with second top with highest volume. Duration of double top is 20 days. Short position can be considered.

[Sangeetha Subramaniam]

Double Top is a price pattern which is an extension of Dow’s Theory. The steps involved in determining the Inverse Double Top price patterns are:

1. Similar to Dow theory the top and bottoms of the line chart is identified.
2. Equivalent tops are identified.
3. The period between these equivalent tops should be at least 1 month
4. The volume during the second tops should be significant
5. If the pattern breaks the in between bottom and moves below then a short position can be created.

[Murugan Thanikachalam]

Double Top is a bearish trend.

Has two equivalent tops, where the volume is high at point B or C, with duration of 20 days between Points A and B.

[Author]

Posts