early double top formation

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  • 09/04/2021 at 2:11 PM #176784 quote
    gnellas77
    Participant
    Average

    hi there,

    i want to ask how someone can enter an early short position on a double top when double top seems completing its 2nd peak but has not broken the neckline (i mean that the fourth and final line on letter M has not been formed at all). Are there any indicators ot other things that i must take into consideration that can predict the downwards move of the 4th line? i lose many trades because the pattern M is not completed and instead of making a double top the stock continues to move upwards on the second peak.

    thank you.

    09/04/2021 at 3:08 PM #176790 quote
    GraHal
    Participant
    Master
    gnellas77 wrote:

    fourth and final line on letter M has not been formed at all

    Above is still in possible breakout (UP) territory. Nowhere near a double top has been formed on above scenario.

    If you are > 70% of the 4th line formed then maybe,  > 90% more confident, but until the 100% has been broken and then even a retrace formed and failed and a lower low formed after the full M … then you may be onto a decent short run??

    The lower low does not necessarily need to be on same TF as the double top.

    gnellas77 thanked this post
    09/05/2021 at 11:02 PM #176843 quote
    Eric
    Participant
    Master

    Sometimes you get divergence in RSI as a early warning

    gnellas77 thanked this post
    09/06/2021 at 10:02 AM #176848 quote
    GraHal
    Participant
    Master

    Yeah try anythng (I do! 🙂 ) but if you get higher highs and higher lows on 1 min TF and deffo on 5 min TF then exit (on the next HL) to live another day / try another time.

    There’s no shame in small losses, but still plenty £££’s capital left for another try.

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early double top formation


General Trading: Market Analysis & Manual Trading

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gnellas77 @gnellas77 Participant
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This topic contains 3 replies,
has 3 voices, and was last updated by GraHal
4 years, 5 months ago.

Topic Details
Forum: General Trading: Market Analysis & Manual Trading
Language: English
Started: 09/04/2021
Status: Active
Attachments: No files
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