THETAUSDTDOUBLE TOP PRICE ACTION
This chart pattern starts forming with bulls already in control of the exchange rate's uptrend. Bears make a stand at a certain rate that will be tested exactly twice before they are finally able to reverse direction, and the exchange rate starts a downtrend.
Let's break down the pattern formation!
In an uptrend, price action finds the first resistance (1), which will be the horizontal resistance for the rest of the pattern formation.
Price action reverses direction from the first resistance (1) and goes downwards till it finds support (2), which will be the only low in the pattern.
Price action reverses direction from support (2) and goes upwards, till it finds the second resistance (3), which will be around the same rate of the first resistance (1)
The pattern is completed when price action reverses direction from the second resistance (3) and goes downwards till it breaks the pattern's lower border at point (4)
Entry: after breaking the pattern's lower border at point (4), either with an entry after the breakout, or after a possible retest of the lower border.
Take profit: identified by measuring the vertical distance between the pattern's upper and lower borders, that measurement is then applied from the breakout rate (4)
Stop loss: the pattern's lower border, which is identified by point (2)
