Welcome, Guest: Register On Nairaland / LOGIN! / Trending / Recent / New
Stats: 3,157,927 members, 7,835,093 topics. Date: Tuesday, 21 May 2024 at 03:55 AM

Double Top Pattern : How To Identify - Investment - Nairaland

Nairaland Forum / Nairaland / General / Investment / Double Top Pattern : How To Identify (235 Views)

How To Trade Double Top Chart Pattern / How To Identify A Legit Forex Investment Company / 3 Easy Clues To Identify Scammers On Nairaland (with Examples) (2) (3) (4)

(1) (Reply)

Double Top Pattern : How To Identify by riyapatelshopcl: 8:40pm On May 04, 2023
The double top pattern is a bearish technical analysis chart pattern that can indicate a potential trend reversal in a stock or security. Here's how to identify it:

Watch YouTube Video :
https://www.youtube.com/watch?v=8ph5ikXTH1U

Look for an uptrend: The double top pattern usually forms after a sustained uptrend in a stock or security. Look for a series of higher highs and higher lows over a period of time.

Identify two peaks: The double top pattern consists of two peaks of roughly equal height, with a trough in between. These peaks should be separated by a period of time, usually several weeks or months.

Draw a resistance line: Draw a horizontal line connecting the two peaks. This line represents a resistance level that the stock or security has been unable to break through.

Look for a breakdown: The double top pattern is confirmed when the stock or security breaks down below the trough between the two peaks. This is often accompanied by high volume and signals a potential trend reversal.

Confirm the pattern: It's important to wait for confirmation of the double top pattern before taking any trading action. This can be done by looking for a sustained price decline below the support level or by using other technical indicators such as moving averages or momentum oscillators.

Remember, technical analysis patterns like the double top are not foolproof, and it's important to use them in conjunction with other forms of analysis and risk management strategies.

(1) (Reply)

You Can Supply Palm Kernel Shell (esan) To Cement Company As A Good - Business - / Kapa — my Honest Review: Scam Or Legit And How To Get Free 5GB Data Daily + 5k / What Is Your Best Investment Decision In 2023 & plans for 2024

(Go Up)

Sections: politics (1) business autos (1) jobs (1) career education (1) romance computers phones travel sports fashion health
religion celebs tv-movies music-radio literature webmasters programming techmarket

Links: (1) (2) (3) (4) (5) (6) (7) (8) (9) (10)

Nairaland - Copyright © 2005 - 2024 Oluwaseun Osewa. All rights reserved. See How To Advertise. 9
Disclaimer: Every Nairaland member is solely responsible for anything that he/she posts or uploads on Nairaland.