✊ Support and Resistance: support and resistance trading, how to trade the double top breakout

1,044 views · Published 6 September 2018 · 5:37 · Indexed 16 October 2026

Channel: BO Turbo Trader · 2018 · Education

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Indicators: 
EMA 3     (blue)
EMA 20   (yellow)
EMA 50   (orange)
EMA 100 (red)
EMA 200 (purple)

Bollinger Band Period 20 Deviation 2 (green)
Bollinger Band Period 20 Deviation 1 (white)

The double top is a frequent price formation at the end of a bull market. It appears as two consecutive peaks of approximately the same price on a price-versus-time chart of a market. The two peaks are separated by a minimum in price, a valley. Double top and double bottom are reversal chart patterns observed in the technical analysis of financial trading markets of stocks, commodities, currencies, and other assets.

Double Top Reversal. The Double Top Reversal is a bearish reversal pattern typically found on bar charts, line charts, and candlestick charts. As its name implies, the pattern is made up of two consecutive peaks that are roughly equal, with a moderate trough in-between. The most basic P&F buy signal is a Double Top Breakout, which occurs when an X-Column breaks above the high of the prior X-Column. From this basic pattern, the bullish breakout patterns become more complex and wider. The wider the pattern, the better established the resistance level and the more important the breakout.

The double top chart pattern is considered to be an indicator of an intermediate- or long-term reversal in price. The inverse of the double top chart pattern is a double bottom, which signals a potential bullish reversal of a downtrend. Double Top. A double top is a reversal pattern that is formed after there is an extended move up. 

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