How to Trade the Double Top Pattern (in The Right Way) [Forex Chart Patterns]

A double top is a frequently occurring chart pattern that indicates a bearish trend reversal, usually at the end of an uptrend. Like the double bottom and triple top patterns, the double top pattern is commonly used by traders and analysts. It is also considered a reliable and easy-to-identify chart pattern.

In this video, we will show you how to identify and trade the double top chart pattern. Here’s a quick overview of what you’ll learn:

First, our analysts will show you what the double top pattern looks like, its characteristics, meaning, and the market scenario in which it usually appears. In this section, we’ll also show how to correctly identify the double top pattern on price charts and draw support and resistance levels to find a signal for entry and stop loss.

Next, we will go through a live trading example to better understand how to trade the double top pattern. In this section, you’ll learn about the M-shape formation of the double top pattern and how to utilize the breakout trading strategy to trade the double top pattern. We’ll also teach you how to find the right entry-level, stop loss level, and take profit.

At last, we briefly discuss the pros and cons of the double top candle pattern and the key takeaways you must remember to identify and trade the pattern.

Let’s get started!

Chapters:

0:00 - Intro
0:42 - How to Identify the Double Top Pattern
2:57 - How to Trade the Double Top Pattern
4:58 - Pros and Cons
5:56 - Key Takeaways

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* The information provided in this video is intended for educational purposes only and is not to be construed as investment advice. Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. There is a possibility you could sustain losses of some, or all of your initial investment and therefore seek independent financial advice if you have any doubts.

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[joelamatta]

awesome! is this for all tine frames? and are higher time frames more confirmation ? Thank you