Videos
What Is the Double Top Reversal Pattern?
-You need a prior trend that is positive in order for it to be a reversal
-There are usually two points that force a stock to reverse
-As the stock climbs upward, it hits the first top, the stock goes down (sentiment is saying the stock is too high), the stock isolates, and eventually creates a second top
-Remember that it creates an “M”
-More tops create more resistance
-The stock can break through the support line
-If you are trying to enter this on the short side, you want to be careful because there is an area of confluence beneath the support line. Make sure the stock clears the support line before entering.
-Usually the double top is shorter and takes less time to develop than the double bottom.

How to Trade a Double Top Reversal Pattern:
-Take the distance between the resistance and support lines (one distance level) and bring it down under the support line.
-That is your ideal goal for where the stock may head.

#stockmarket #stockcharts #doubletop #technicalanalysis #marketcharts

Posted at: https://tradersfly.com/blog/understanding-the-double-top-chart-pattern/

???? GET MY FREEBIES

Freebies

???? SUBMIT A VOICE QUESTION

Question – Hungry for Returns

???? START HERE: FOR NEW TRADERS

Start Here – for New Traders

???? START HERE: OPTION TRADERS

Start Here – Option Traders

???? MY CHARTING TOOLS + BROKERS

tools

???? MY COMPUTER EQUIPMENT

Resources: Computer Gear

???? GET THE NEWSLETTER

YouTube Newsletter Signup

???? SEE OUR MEMBERSHIP PLANS
https://tradersfly.com/go/members/

???? STOCK TRADING COURSES

See All Our Trading Courses

???? STOCK TRADING BOOKS:

Our Stock Trading Books

? GET PRIVATE COACHING

Coaching for Stock Traders

???? WEBSITES:

Home Version 2.0

Home Page

Homepage 2.0

Home

Home

???? SOCIAL MEDIA:
https://tradersfly.com/go/twitter/
https://tradersfly.com/go/facebook/

? SUBSCRIBE TO OUR YOUTUBE CHANNEL
https://tradersfly.com/go/sub/

???? MY YOUTUBE CHANNELS:
TradersFly: https://backstageincome.com/go/youtube-tradersfly/
BackstageIncome: https://backstageincome.com/go/youtube-bsi/
MyLittleNestEgg: https://mylittlenestegg.com/go/youtube/

???? ABOUT TRADERSFLY
TradersFly is a place where I enjoy sharing my knowledge and experience about the stock market, trading, and investing.

Stock trading can be a brutal industry, especially if you are new. Watch my free educational training videos to avoid making big mistakes and just to continue to get better.

Stock trading and investing is a long journey – it doesn’t happen overnight. If you are interested to share some insight or contribute to the community we’d love to have you subscribe and join us!

Articles You May Like

Reeves must convince on growth to keep bond investors on side
Top Wall Street analysts prefer these dividend stocks for steady income
While Europe frets, India expects
Munis steady, USTs mixed after CPI
Munis weaker as Connecticut prices for retail