double top-take profit

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08/18/2023 at 2:58 PM #219308 quote

gnellas77
Participant

Average

Hi there,

Usually i short the double top formation but i dont know where to place the “take profit”. Sometimes i gain 1.5% and sometimes the stock falls of 7% for example.

How should i know if my stock has potential for further drop? Any ideas?

thanx!

08/18/2023 at 3:50 PM #219317 quote
robertogozzi
Moderator

Master
I’d suggest one of these methods:
1. fixed TP (which seems to be the one you are currently using)
2. multiplier of the SL
3. amplitude of the gap between the TOP price and the lowest price where the spike started from, multiplied by a fixed factor of your choice
4. amplitude of the gap between the TOP price and the lowest price where the spike started from, multiplied by a Fibonacci extension, possibly the greater the gap the further the extension.
coincatcha thanked this post
08/28/2023 at 10:39 AM #219935 quote

coincatcha
Participant

New

I’m liking number 4 on this list Roberto. I will also look into this if I can work out the code as never tried fibs in auto but used them a lot manually. It’s amazing how many times breakout moves retrace 50% exactly.

As an additional suggestion I am having early success with ‘IF in profit ignore timestop’ then start applying alternate management such as pointsback trailing stop to juice a bit more. This method is particularly useful for after hours run-ons.

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double top-take profit

General Trading: Market Analysis & Manual Trading

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gnellas77 @gnellas77 Participant

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This topic contains 2 replies,
has 3 voices, and was last updated by coincatcha
2 years, 5 months ago.

Topic Details

Forum:	General Trading: Market Analysis & Manual Trading
Language:	English
Started:	08/18/2023
Status:	Active
Attachments:	No files

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