How to Trade the Double Top Pattern

http://goo.gl/BMLh7F The double top pattern is one of the most common technical patterns used by Forex traders. It is a reversal pattern that forms after an extended move up. Just as the name implies, this price action pattern is formed by two “tops” which form at a key resistance level. The idea that the market was rejected from this level not once, but twice, is an indication that the level is likely to hold. In this video we'll discuss the dynamics of the double top pattern using the EURUSD daily chart. We'll take a look at how the pattern forms as well as how to identify a profit target. As you can see from the video above, the market made an extended move up but was quickly rejected by heavy resistance (first top). The market then pulled back to support and subsequently retested the same resistance level (second top). Once again the market was rejected from this level. One common misconception is that the double top pattern is confirmed once the second top forms. In reality a double top is only confirmed once the market breaks back below the support level (neckline). Read the full lesson... http://goo.gl/BMLh7F

Comments

1. Great vid,
2. hey justin great vid. sorry , when would you have bought/ entered ? cheers
3. Look left for structure...most important part and u missed out on it