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Double Top

📊 How to: The Double Bottom Pattern📍 What is the Double Bottom Pattern? The double bottom pattern is a trend reversal pattern observed on charts, such as bar and Japanese candlestick charts. Similar to the double top pattern, it consists of two bottom levels near a support line called the neckline. The pattern indicates the end of a downtrend and is confirmed by two failed attempts to break the support level. As a bullish reversal pattern, it signifies a shift in momentum and is commonly used by traders to enter long buying positions. 📍 How to Identify In general, it is fairly simple to identify a double bottom pattern on a trading chart. This pattern can be identified when the price retests the support line and rises up again above the neckline. As a tip, you can usually identify the pattern as a “W” letter formation. 💥 Key Takeaways The double bottom pattern is a bearish momentum reversal resembling the letter W. It requires three main elements: first low, second low, and a clear neckline to identify the formation. The pattern is more effective at the end of a strong downtrend rather than in a ranging market. Drawing a support level and a neckline is necessary to trade this pattern. Confirming the pattern with other technical analysis tools like moving averages, RSI, Fibonacci retracement level, and MACD is important. The recommended approach to trading the double bottom pattern is to wait for the price to break the neckline with a stop-loss order and assess the risk-reward ratio. 👤 @QuantVue 📅 Daily Ideas about market update, psychology & indicators ❤️ If you appreciate our work, please like, comment and follow ❤️
Education
by QuantVue
2
Aggressive Buying🔍 Current Situation: No favourable buying opportunity on GBPUSD, but counter-trend trading possibilities exist. 🔴 Retest of Double Top: Watch for a retest of the double top pattern completing at 1.2745 on the 4-hourly chart. Traders eyeing a reversal will be attracted. #DoubleTopPattern 🦈 Bearish Shark Pattern: Keep an eye on the Bearish Shark Pattern completing at 1.2743. Short-savvy traders may join in. #SharkPattern 💥 Market Reaction: As two trader groups converge at 1.2745, expect heightened volatility and rapid movements. Stay prepared! #VolatilityAlert 📊 Trade Strategy: Exercise caution with counter-trend trades. Set conservative targets and manage risk effectively. Scale in wisely. #RiskManagement 👀 Stay Vigilant: Continuously monitor price action and adapt your approach as the market unfolds. Protect your capital! #StayAlert
Short
by RaynLim
MARICO- Daily/Hourly Timeframe-Bearish patternStock is looking weak in daily time frame. From past few days it’s not able to cross it’s previous swing in daily time frame. It’s at crucial level 520-523. It has bounced multiple times from this lvl. However, if this lvl breaks on 30th June it will be good opportunity to go short. Please make sure there should be a bearish price action in 5/15minute time frame for intraday trades. This is only for educational purpose, please manage your risk accordingly.
NSE:MARICOShort
by Rushikesh_09
📉🔥 Bearish Breakout: Ethereum Double Top Spells Trouble! 🐻💥In the exciting world of crypto, a compelling bearish setup has emerged on Ethereum's horizon. The price action has given birth to a double top pattern, indicating a potential trend reversal. Moreover, this ominous formation has taken shape on a formidable supply zone, adding strength to the resistance level. With strategic analysis and careful observation, the optimal entry point for this bearish trade is identified here around 1870. As the bears gain momentum, the first take profit level is set at 1815, followed by a more ambitious target of 1740. Stay tuned as we closely monitor Ethereum's price action, ready to capitalize on this thrilling opportunity. Join the discussion and let's navigate the crypto waters together! 🚀🌕💎 feel free to share your toughts in the comment section. And dont forget to press the like button if you think this insight was helpful🚀
BITSTAMP:ETHUSDShort
by Thomas_Zito
3
BTC Bitcoin Double Top on Overbought AreaBitcoin Price Target was reached after the Wall Street-backed EDX Exchange Launch: Bitcoin has formed a double top pattern within an overbought area, which suggests a potential bearish reversal in the near term. The double top pattern is characterized by two distinct peaks at approximately the same level, indicating a potential exhaustion of buying pressure and a shift towards selling pressure. Considering this double top formation and applying Elliott Wave theory, there is a projected price target of $28,300. Elliott Wave analysis aims to identify repetitive patterns in market cycles, including impulse waves and corrective waves, to predict future price movements. Looking forward to read your opinion about it.
Short
by TopgOptions
AUDCAD - BROKEN CHANNEL📉Hey Traders👋🏻 The AUDCAD Price Reached a Major Resistance Level (0.91064 - 0.90637) and Formed an Ascending Channel✔ Currently, The Price Reject To Create New Higher High, The Last Higher Low is Broken (Break of Structure) Moreover, The Support Line of The Channel is Broken! So, I Expect a Bearish Move📉 i'm waiting for a retest... ----------- TARGET: 0.88315🎯 ___________ if you agreed with this IDEA, please leave a LIKE, SUBSCRIBE or COMMENT!
Short
by Hsan_BenAhmed
4
🪙📉 Gold: Double Top Breakdown - Get Ready for a Bearish Ride! Attention, traders! We have an enticing bearish setup in the Gold market on the daily timeframe. The key to this setup lies in the formation of the double top pattern, where price establishes two prominent peaks at approximately the same level. This pattern serves as a robust bearish reversal signal, indicating a potential downtrend ahead. As price stagnated below the neckline, which acted as a strong resistance, the bearish sentiment intensified. During this period of consolidation, a trend continuation triangle has taken shape. This triangle formation further reinforces the bearish bias, suggesting that the downtrend is likely to continue. As traders, we can leverage this setup and seek opportunities to profit from the downward movement. Looking at the indicators, the moving averages continue to show a bearish momentum. These averages not only act as resistance levels but also validate the bearish bias. The convergence of these factors further supports the bearish outlook, providing additional conviction for traders to consider entering a short position on Gold. With all these elements in place, it's time to seize the moment and enter a short position on Gold. The initial take profit level can be set around 1910, where we can secure partial profits and capitalize on the downward momentum. However, our ultimate target lies around the 1855 area, aiming to capture the potential continuation of the downtrend. As you navigate this trade, remember to take significant profits when approaching the target area, as it represents a crucial support zone. Please respect money management, dont place more than 2% on that trade also. Lets trade the trend ! happy trading !📉🪙 And don't forget to press the like button if you think this insight was helpful 🚀💪
OANDA:XAUUSDShort
by Thomas_Zito
8
Spotting Market Reversal by FrogAlgo🗣️ Predicting market reversal is one of the most challenging tasks trader are faced with day by day. These indicators and patterns can handle the initial steps for you. Spotting Market Reversal by FrogAlgo 💥 I. The Spotting Market Reversals is made up of two main phases 1) What Indicators for spotting market reversal a. Oscillator TSI b. SMAs (20,50,200) and EMA200 c. Coloring Candles 2) Identifying the current patterns in market a. H Pattern (Double Bottoms) or Inverted H Pattern (Double Tops) b. SMAs | EMA200 Support or SMAs | EMA200 Support Resistance c. Gap-Up (Oscillator) or Gap-Down (Oscillator) d. Side-Way Candles + SMAs | EMA200 Support or Side-Way Candles + SMAs | EMA200 Resistance II. Spotting Market Reversal consists two parts: 1) Market Reversal (Bottom) for Long : 2) Market Reversal (Top) for Sell : Explanation: 1) Market Reversal (Bottom) for Long : a. Oscillator in GreenZone → SMAs | EMA200 Support pbs.twimg.com b. Oscillator in GreenZone → H Pattern (Double Bottoms) pbs.twimg.com c. Oscillator in GreenZone → Gap-Up (Oscillator) pbs.twimg.com d. Oscillator in GreenZone → Side-Way Candles + SMAs | EMA200 Support pbs.twimg.com 2) Market Reversal (Top) for Sell : a. Oscillator in RedZone → SMAs | EMA200 Resistance pbs.twimg.com b. Oscillator in RedZone → Inverted H Pattern (Double Tops) pbs.twimg.com c. Oscillator in RedZone → Gap-Down (Oscillator) pbs.twimg.com d. Oscillator in RedZone → Side-Way Candles + SMAs | EMA200 Resistance pbs.twimg.com
NASDAQ:AMD
by A1TradingHub
Expanded Flat -> Triple-BottomTotal2 looks like an expanded flat completing its reversal at the end of a C wave. It has twice bottomed just shy of the 1.618 for its trend-based fib, and may or may not reach a 3rd bottom near this area before exiting above its neckline. If it doesn't reach bottom again, it's possible it could perform a move similar to what INDEX:BTCUSD did here: However, it has so far failed to maintain a breakout if we draw a similar wedge on Total2: A 1x measured target lines up with its 50% trend-based fib, while the 2x measured target for the triple-bottom lines up exactly with its 0% fib, exactly where total2 reached its ATH. This would go in line with my theory that movements in DXY could lead to recoveries across multiple markets that end in double-tops.
CRYPTOCAP:TOTAL2
by dudebruhwhoa
BTC 30m forming Double Top on VPVR POC and Trend WavesDouble Top is a bearish formation. In this case, it's being formed on the Point Of Control (POC) as a neckline, the strongest support/resistance on Volume Profile Visible Range (VPVR), which shows what price bulls and bears fought the most. If this formation breaks the neckline, the potential target price is exactly 26000. We can predict the potential target by measuring the higher Top to the neckline and transferring it below it. As you can see, a gap in VPVR will enable this price drop if the neckline breaks down. We also have a double top on the waves at the bottom to support this formation, meaning the trend waves, strength, and candles tell the same story. Keep in mind low volume and possible manipulation in every decision you make in the low-volume market.
Short
by RockinHood
XAUUSD 2 HourDouble top has formed a key level resistance at the top, & a very strong bearish impulsive move has occurred after breaking price below structure. Now, I can see a short term exhaustion take place early in the week to retest previous support as new resistance forming a lower high, where sellers may step in again heavily to push price back to the previous low, & if that is broken a new lower low into the higher timeframe support region at the bottom can occur.
FOREXCOM:XAUUSDShort
by Profound_Ambition
Gold prepared for another bearish tumbleGold has retraced to the neckline of the double top pattern, upon which it provided a strong bearish engulfing. The weekly resistance has failed to be completely broken in addition to a rejection of the 38% fib. The 4H is trading within a range creating a new lower low along with ADX. The moving average is crossing to the downside as well as a trendline break to the downside. Price is now on the short side of the trendline. I will look for shorts near the weekly resistance for a 4H lower high. or a complete retest of the major 38% where the daily was rejected. Targets for shorts are -27%. extended target at -61%.
OANDA:XAUUSDShort
by DesharedPierreJr.
GOLD-USD|POSSIBLE REVERSAL| SHORT SETUP|ONE HOURGOLD-USD is moving in BULLISH direction from last few hours. However, in this technical analysis, several indications are presented which suggests the possible reversal of this precious metal instrument. Firstly, there is a presence of BEARISH divergence, instead the price is steadily RISING, the Relative Strength Index (RSI) has been showing a downward movement which indicates that the bullish momentum of GOLD-USD may be losing its momentum. Thus, this divergence between the price and the RSI suggests that the price may be overbought and due for a correction. Secondly, there is a presence of DOUBLE TOP reversal pattern which also supports the idea of the reversal for GOLD-USD. This DOUBLE TOP Pattern was observed at one hour time frame analysis. Based on above, it appears that the GOLD-USD pair may take the BEARISH movement from the ENTRY PRICE mentioned in the chart. Thus, it can be an opportunity for a SHORT TRADE if it breaks the ENTRY PRICE level. The Risk to Reward Ratio is suggested 2% of the total portfolio. Best of Luck..
TVC:GOLDShort
by haroonsiddiki
3
EURAUD I Approaching daily structure and strong demandWelcome back! Let me know your thoughts in the comments! ** GBPUSD Analysis - Listen to video! We recommend that you keep this pair on your watchlist and enter when the entry criteria of your strategy is met. Please support this idea with a LIKE and COMMENT if you find it useful and Click "Follow" on our profile if you'd like these trade ideas delivered straight to your email in the future. Thanks for your continued support!
Long
by BKTradingAcademy
6