Double Top is the bearish reversal pattern. This pattern is observed in Wipro daily chart. The double top is qualified based on the following analysis.
The conditions and qualifications.
1) There should be two equivalent Tops – Two equivalent tops around Rs.300 are noticed.
2) Volume at Point B or Point C should be higher – The volume at point B noticed relatively higher than A & C.
3) Duration between points A & B should be at least 1 month. – The difference here is 32 days.
Trading plan: Short position
Entry point: Rs. 280 (initiated below previous low)
Stoploss: Rs.300 (at the top point)
Target : Rs 260 (Considering 1:1 – Risk to reward)
Trade result: Target achieved in 10 Days.
Hi Suresh Surulimuthu, It will be very effective if we use 2 years chart when we do double top analysis. It helps us to know the long term trend before the formation of double top or bottom.
Dear Mohan Kumar. Thanks for your comments. Yes Sure. I acknowledge the same and will correct myself.