A double top is a bearish pattern that can occur frequently in the markets across different time frames. The big question with a double top is how deep a market can fall upon failing to break out of the peak. To potentially increase your chances of success trading this pattern, you might want to wait for confirmation either way. You can always jump on a double top–anticipating its traditional bearish outcome or betting on a breakout toward the upside, but if you do, be sure to place a stop above resistance (if bearish) or support (if hold a contrarian bullish bias). In the example a double top on the hourly chart might have resulted in a nice short-term downtrend. Waiting for price to break the support line and placing a stop above the highest peak could have resulted in a strong trade on the short side. COPY TRADE : £59.99 / Month incl access to Premium signals and Premium Telegram Channel.
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