All language subtitles for 10. Double Top

So if you took the letter W and you turn it upside down, you would have the letter M and just like

if you took a double bottom Shahbandar and in fact turned it upside down, you would have a double top

char pattern.

It would form the shape and sever w it would form the shape of an M and a double top char pattern is

a strong uptrend.

That's because it's a reversal.

These are all reversal patterns is now going to reverse and become a downtrend.

So it's a very much the mirror image of a double bottom.

Just we're looking at double top.

And if you look at this and you can kind of guess what might be the M here and this chart here, you

can from your line to help you see the formation of that letter M and we're going to trade around that

letter M, so let's put some more stuff around this so we can see how we would trade that pattern.

So with the double top, you can see we have a strong uptrend going up.

There might have been a pause there like it's shown here with some profit-taking, but either way there's

a strong uptrend that's very much established and then it peaks out.

And the first of the two double tops that the first one there, you reach a peak and it turns around

and really starts to go significantly back down.

And then once it goes back down, it reaches a point of the lowest price there that in turns back around

and goes back up to a top, forming a double top as it turns back around again, forming the letter

M.

So what we're looking for is what we're looking for an uptrend we're looking for.

You know, that's a really stop at a top there or a resistance line would be drawn and then it's going

to kind of come back down from that level.

Erm and now our confirmation point is at the bottom of the, of the letter M or in the middle part of

the IMF, that low price there.

And that's where if we had bought in before we would be selling there, we would have confirmation that

this is definitely a chart pattern.

That's a double top and double top is a reversal pattern.

So maybe we had sold a little bit before maybe taking our own profits.

But if we want to hang in there and once we see the double top form, then we definitely and we break

that confirmation point.

You definitely want to sell at that point, because now we're now we're going that from an uptrend.

We're going to a strong downtrend.

There may be some retracement or some go back up the opposite way where people are looking to buy in.

They might have thought all went down too far.

We're going to buy back in and drive that up a little bit, back up above the confirmation point.

And what that does is it shakes out kind of a last Holdens who see it, OK, it's gone back up a little

bit.

It's gone above that confirmation point.

I'm just going to take my profit now because I just want to get out because I know a double top is formed

and I want to get out.

So if I didn't get out before at the confirmation point, now's a the time to get out and there's no

guarantee there's me retrace me either.

He could just kept going down from here.

But that's not unusual to see either.

So the key on this is that you're in a strong uptrend is trying to go higher twice.

Didn't make it went back down through the confirmation point of that middle part of the letter M.

And then I've been I've done a full reversal and continues on down.

And so you want to have sold around that confirmation point, same thing as far as some conditions to

be met.

You know, again, mirror image of the double bottoms, but now it's a double tops, you know, like

a ten days between the lows.

It could be months, you know, but it could be you know, you're looking for at least ten days between

them in the variation between be you mean the highs now is the no more than four percent.

Again, it's not looking like something that's kind of the staggering steps upward or something like

that.

You're definitely forming that.

And so you want those tops to be within four percent of each other.

So it really starts to look like that letter and and the center move down.

In this case, the centre down move would be a minimum of ten percent from the higher of the two tops.

So I think of whichever top was higher you want.

If they're not they want, this'll always be perfect.

But there will be within four percent of each other.

You want to be at least to have that middle part B ten percent down.

Those go rebound back up to form the second top and then come back down.

And then the price must move below the confirmation line to be a true double double top chart pattern.

So the confirmation line, if you haven't shown taking profits before that, you might not.

And that's OK.

You want to really make sure you if you're trading off this pattern that the pattern develops.

But once you say a confirmation breakthrough, that's the time to sell.

At that point, if you've had bought into it and wrote a nice up trend yet and take your profits there,

it goes back and it goes about the confirmation line a little bit, then that might be give you a second

chance.

But if it's a true double top chart pattern, you know, it's a reversal pattern.

And now the prices are reversing from upward trending to downward trending and a very definite sell

signal once you break that confirmation point.