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.

Free Trading Guides
EUR/USD
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
Oil - US Crude
Mixed
Wall Street
Bearish
Gold
Bullish
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
GBP/USD
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
USD/JPY
Bearish
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
Real Time News
  • US Dollar Price Action Setups: EUR/USD, USD/CAD, USD/JPY https://www.dailyfx.com/forex/video/live_events/2020/06/02/US-Dollar-Price-Action-Setups-JS-EUR-USD-USD-CAD-USD-JPY.html https://t.co/mfp3Q7wwNu
  • Indices Update: As of 20:00, these are your best and worst performers based on the London trading schedule: Germany 30: 0.73% France 40: 0.71% FTSE 100: 0.33% Wall Street: -0.01% US 500: -0.01% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/qisyRbrKX6
  • China is increasingly aggressive in targeting technology according to official - BBG
  • The Mexican Peso rally has taken USD/MXN below a key support pivot in price and leaves the pair vulnerable to further losses heading into June trade. Get your $USDMXN technical analysis from @MBForex here:https://t.co/lhWwu2KbbN https://t.co/dJe9DGskq0
  • Canada auto sales down 44% YoY for May - BBG
  • Commodities Update: NYM WTI Crude 36.75 (+3.70%), ICE Brent Crude 39.46 (+2.97%), NYM NYH Gasoline 111.54 (+4.57%). [delayed]
  • While the Dollar's tumble is one of the more impressive moves in the broader markets at the moment - its run is bearish. Its bullish counterpoint was the Aussie Dollar. Impressive move across board, but $AUDJPY's 2-day rally is biggest since July 2016 https://t.co/YtpXVs3bKP
  • Gold currently trades around $1,740/oz. and looks set to push higher if the sell-off in the US dollar continues. Get your $gld technical analysis from @nickcawley1 here:https://t.co/oFwLhi2XB8 https://t.co/nFQcplaexS
  • Commodities Update: As of 18:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: -0.25% Gold: -0.81% Silver: -1.73% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/IKRKgZf2ha
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.98%, while traders in US 500 are at opposite extremes with 72.99%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/Q4CoU5iGAD
Identifying a Double Top

Identifying a Double Top

2010-12-07 21:17:00
Richard Krivo, Trading Instructor
Share:

Student’s Question:

I read your prev. comments on Double Bottom/Top formation. I would like to know how many candlesticks should be between both legs to qualify them…thanks.

Instructor’s Response:

The interpretation of candlestick charts has often been referred to as being more of an art than a science. As such, there is not a hard and fast number of candlesticks that need to occur between the two legs. More is better than less, and two candles right next to each other would not qualify.The process/pattern that needs to occur for a valid pattern is price action needs to touch support for a bottom or resistance for a top, trade away from that level for a time and then come back and test that level again and respect it. Ideally, a longer period of time between the two levels would lend more validity than a shorter period of time. Thepreciselength of time or number of candles is definitely debatable.Take a look at the example Daily chart below...

Identifying_a_Double_Top_body_32893d1246488173-post-day-double-top-chart.png, Identifying a Double Top

Note how the double top pattern forms a capital letter "M". In a double bottom pattern we would be able to see a capital letter "W".Also, a textbook double top pattern will take place at a new high on the chart while a textbook double bottom will take place a new low.

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

DISCLOSURES

News & Analysis at your fingertips.