Skip to content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
Gold
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Identifying a Double Top

Identifying a Double Top

Richard Krivo, Trading Instructor

Student’s Question:Double Top…Yes?Instructor’s Response:I can see how you came to your conclusion on the historical chart of the AUDUSD you posted below...However, while we do have two candles testing the same price level on the chart, the two candles are right next to each other so that would not constitute a double top.For a true double top/bottom, we would want to see price action top/bottom out, pullback for a period of time (several to many candles between the two tops/bottoms…the more candles in between the more valid the pattern) and then test the former level again.See the example below...Also, on the chart below, note how the price action when forming the Double Top forms the capital letter “M”. If it were forming a Double Bottom, it would be in the shape of a capital “W”.

Identifying_a_Double_Top_body_26895d1237852975-post-day-chart-3-23-09-.png, Identifying a Double TopIdentifying_a_Double_Top_body_26896d1237852988-post-day-chart-3-23-09-b.png, Identifying a Double Top

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES