Double Tops Reversal Strategy
Double Top Strategy
Double tops upwards indices trend reversal strategy is a reversal indices pattern which forms after an extended upward indices trend. As its name implies, this reversal strategy is made up of two consecutive peaks that are roughly equal, with a moderate trough between.
Double tops upwards indices trend reversal trading strategy is considered complete once stock indices price makes the second peak and then penetrates the lowest point between the highs, called the neckline. The sell stock indices signal from this up indices trend reversal trading strategy occurs when the stock indices market breaks-out below the neck line.
In Indices, Double tops upwards indices trend reversal trading strategy is used as a early warning stock indices signal that a bullish upwards indices trend is about to reverse.
However, Double tops upward indices trend reversal trading strategy is only confirmed once the neckline is broken and stock indices trading market moves below the neckline. Neckline is just another name for last support level formed on stock indices chart.
Summary:
- Double tops upwards indices trend reversal strategy Forms after an extended move upward
- This Double tops upward indices trend reversal trading strategy formation indicates that there will be a reversal in stock indices trading market
- We sell when stock indices price breaks out below the neckline: see below for the explanation.
Up Indices Trend Reversal Strategy - Double Top Reversal Strategy
The double top look like an M Shape, the best reversal stock indices signal is where the second top is lower than the first one as displayed on the stock indices trading example explained and illustrated below, this means that the reversal stock indices signal can be confirmed by drawing a downward indices trend line as shown below.
Double Top Indices Trend Reversal Indices Trading Strategies
