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Double Top or Bottom

DXY - Weekly - Multi-Timeframe Analysis Series 1Continuing with another episode of Multi-Timeframe Analysis Series 1, I'd like to break down the DXY. The DXY being weighted as follows: EUR - 57.6% JPY - 13.6 % GBP - 11.9% CAD - 9.1% SEK - 4.2% CHF - 3.6% As you may imagine, there's a lot more interest in using the DXY for a correlation / confluence tool when trading the EURUSD. The EURO equates to over half of the overall weight of the index, meaning there's a majority interest in the EUR vs USD. We can use this to our advantage, alongside the USDOLLAR INDEX, to add positive or negative trade factors when considering positions across USD pairs and commodities. Comments Looking at the Weekly timeframe gives us a different picture to that on the Monthly. We a low-test candle printing into the 20/50 EMA wave, this indicates a possible continuation to the near-term levels of 97.40 region. If we did see this push to the upside, it's change the formation on the current Monthly candle (and potentially the overall outlook shared within the Monthly breakdown). Thinking in terms of the longer time horizon, if we see a break of 97.80 I think it's possible to reach the realms of 100. Key Note The Weekly and Monthly are conflicting, which can often be a sign of the overall bias changing from beneath the surface. The smaller timeframes turn quicker, and when they align, this can change the direction gradually on the higher timeframes.
TVC:DXYEducation
by robdee4x
1
DXY - Monthly - Multi-Timeframe Analysis Series 1Continuing with another episode of Multi-Timeframe Analysis Series 1, I'd like to break down the DXY. The DXY being weighted as follows: EUR - 57.6% JPY - 13.6 % GBP - 11.9% CAD - 9.1% SEK - 4.2% CHF - 3.6% As you may imagine, there's a lot more interest in using the DXY for a correlation / confluence tool when trading the EURUSD. The EURO equates to over half of the overall weight of the index, meaning there's a majority interest in the EUR vs USD. We can use this to our advantage, alongside the USDOLLAR INDEX, to add positive or negative trade factors when considering positions across USD pairs and commodities. Comments Looking at the Monthly timeframe we appear to be stalling between the 61.8% retracement of A>B as indicated on the chart. Price is showing high test candles at this level, as well as a potential rolling double top (continuation formation). Given the circumstances of this in its current form, 94.00 could easily be on the cards as we move into the second quarter of 2019. Key Note At time of writing this, it's the current monthly candle cannot be considered an indication of direction just yet as it hasn't fully formed (being the 24th of the month).
TVC:DXYEducation
by robdee4x
3
Estudo dos candles no IRBR3Primeiro vou dizer que essa é uma análise pós fato. Isso significa que quando fazemos uma análise após o movimento acontecer no mercado ficamos com aquela sensação de “nossa como era óbvio, como eu não notei antes”. No entanto, muitas vezes por nossas próprias expectativas de como o mercado vai andar no futuro acabamos não dando a relevância adequada aos sinais que muitas vezes estão se esfregando na nossa cara. E esse é um dos casos. Acabei nem reparando os sinais que se tivesse seguido teria dado um retorno muito bom. Marquei eles, nos pontos A, B e C e vou explicar um a um. O ponto D é uma previsão. PONTO A: O Candle central circulado que aparece exatamente em cima de uma zona de suporte (marcada por uma linha preta) é um exemplo clássico de martelo. O candle antecipa todo forte movimento que vem a seguir e foi um ótimo sinal de compra. Na prática, um martelo verde (no qual o dia fecha no positivo) tem mais relevância que um martelo vermelho, mas mesmo assim valeria uma aposta. Lembrando que um martelo é um dos Candles mais importantes de reversão altista. PONTO B: São 3 Candles em uma sequência muito interessante, e que aparecem no topo de todo o movimento. O primeiro candle verde com o segundo candle formam em conjunto um Harami baixista. O segundo candle sozinho é uma estrela cadente, (shooting star), também um sinal baixista. Por fim o terceiro candle é um enforcado. Outro sinal de reversão baixista muito significativo. O corpo dela deveria ser um pouco menor para ser um exemplo de livro, mas paciência. Então temos 3 sinais significativos de reversão baixista no topo do movimento... é quase como pegar um megafone e gritar “CUIDADO MADEIRA!!!” PONTO C – O candle central circulado é outro martelo clássico dos livros, bem em cima do suporte. E o que acontece no dia seguinte? O IRBR3 fecha com quase 6% de ganho em 1 dia. PONTO D – No ponto ou zona D é o local onde eu iria procurar por outros sinais de reversão baixista. O que me faz pensar isso? Primeiro, é um zona de resistência forte, já que reverteu previamente o movimento. Segundo o IRBR3 saiu de seu canal de tendência no qual estava há mais de um ano. Terceiro, o papel está subindo desde seu IPO e esse pode ser o local no qual vamos ver um topo duplo e uma reversão pelo menos temporária do movimento de alta. Está na hora da IRBR3 tomar um pouco de fôlego antes de voltar a subir.
BMFBOVESPA:IRBR3Education
by Andarilho
BTCUSD H1/D1 charts (3/8/2019)Good morning, traders. Price continues to press upward in spite of the overhead supply. Because this is happening within sideways movement there isn't much to say today other than the weekend is upon us and we usually see a strong move during that time, so traders should be keeping that in mind regardless of the direction of their trade. The H1 chart shows an Adam and Eve double bottom pattern that forms the local TR. Price is printing a slightly ascending channel as it consolidates toward the $3900/$3940 resistance level. RSI continues to print a descending broadening wedge and MACD completed a bullish crossover earlier this morning and is pulling away from the signal line. The targets remain the same with the expectation of a move up to $4134, at least, based on the height of the double bottom pattern and local TR. Traders should be keeping an eye on volume and price action as price pushes through $3950 and $4000 to get a better idea of how price will react as it nears the target. As mentioned previously, the target has the potential to print a cup, followed by a handle, which would then have price targeting $4700+. D1 chart shows two previous days of doji candles printing slightly higher followed by today's candle which is much more significantly bullish at this time. However, there is still more than 1/3 of the day left in the candle and we need to see the expected follow through. MACD is about to cross bullishly. Be sure to refer to my previous analysis for other possible targets. Yesterday's D3 candle completed strongly bullish and engulfing the previous D3 candle while closing above the 21 EMA and pivot. The weekly candle is looking good at this time as well. Price continues to hold above the 50% level of the December move up, which is bullish. As we discussed a month ago, weekly price is finding itself consolidating between the 200 MA on the bottom and 200 EMA on the top. A close above $4100 would put price above that 200 EMA resistance level. A close below $3885, however, would put price below the 200 MA support level. Every day, we have a choice to act positively or negatively, so if you get a chance, do something decent for someone today which could be as simple as sharing a nice word with them. You just might change their day, or even their life. Remember, you can always click on the "share" button in the lower right hand of the screen, under the chart, and then click on "Make it mine" from the popup menu in order to get a live version of the chart that you can explore on your own.
BITSTAMP:BTCUSDEducation
by Chris_Inks
FB: Buybacks Buoy Stock but Privacy Issues Remain a ProblemFacebook, having been pressured by the European authorities for numerous privacy violations and illegal use of its customers’ personal information, is trying to mitigate the risk of criminal charges as well as monopoly charges. Mark Zuckerberg has announced that FB is concerned with the privacy of its customers. He claims, without any details or explanations, that the platform will be more focused on privacy. He is also making some features specific to certain modes of communication. All of this will impact FB’s stock price. Currently FB has some buybacks in play this year. The intermediate term bottom formation is not completed, and volume is very low. The Institutional Holdings Percentage has declined and even with the recent gap up, the stock has plenty of work to do to create strong momentum energy to move it up further. The changes FB is making may or may not make its customer base happy. That remains to be seen. It also is likely to impact revenues growth.
NASDAQ:METAEducation
by MarthaStokesCMT-TechniTrader
Bitcoin Long Term CycleIndicators are more powerful when looking on the weekly or monthly. If we look at the 2014 cycle, I think we are around the same point today when it bottomed. As in my previous ideas on BTC, I expect a retest of 200 weekly EMA soon that could bring down price to 3200 or 3000 $, making a double bottom and starting a new cycle for the bulls. Good luck guys. -------------------------------------------------------------------------------------------------------------- My Website - Automated Strategies with Backtest and Alert Setup
BITSTAMP:BTCUSDEducation
by cyatophilum
7
Double bottom and Double topThe Double Bottom Reversal is a bullish reversal pattern typically found on bar charts, line charts, and candlestick charts. As its name implies, the pattern is made up of two consecutive troughs that are roughly equal, with a moderate peak in-between. It is important to remember that the Double Bottom Reversal is an intermediate to long-term reversal pattern that will not form in a few days. Even though formation in a few weeks is possible, it is preferable to have at least 4 weeks between lows. Bottoms usually take longer than tops to form and patience can often be a virtue. Give the pattern time to develop and look for the proper clues Double top is a chart pattern, characterized by two consecutive peaks in price, that signals a potential bearish reversal of an uptrend. The double top chart pattern is considered to be an indicator of an intermediate- or long-term reversal in price. After two attempts by bulls to push the price above key resistance levels, many bulls may capitulate and bears often take control over the market price.
COINBASE:BTCUSDEducation
by CryptoC77
The Famous Risk/Reward Myth If you have been trading or interested in trading for some time, I am sure you have heard some online "teachers" say that you MUST have a 1:3 or 1:5 R/R in order to be profitable.. That is absolutely FALSE! If you hear a "professional trader" say that, odds are they are not truly a trader.. A professional trader understands that R/R & win % are correlated. The higher the R/R, the lower the win %, The lower the R/R, the higher the win %.. Determining an appropriate R/R should be decided based on your strategies performance (derived from backtesting different targets/stop losses) as well as your psychology. In other words, R/R and win % should be viewed as one metric, as they MUST work together in order for you to be a consistently profitable trader. As for the psychology aspect- are you a trader who can lose 70 out of 100 trades so long as your making money? I personally prefer to win 60-70% of my trades but that decision is up to you. The important thing is that you balance these two metrics to ensure profitability while catering to your psychology to maintain confidence in your strategy. There is no right or wrong in trading, only what works and what doesn't! If you are not sure what Risk/Reward or Win % is, please see below- Win % Win/Loss Ratio also referred to as Profit/Loss Ratio What Is Risk/Reward? Risk/Reward is a used by traders to determine how much capital they are willing to risk in order to make a desired reward. For Example- lets pretend you are using a trading strategy that has a 1:1 R/R & you are risking $10 on each trade. A 1:1 R/R would mean that you are risking $10 to potentially make $10. Using this same example with a 1:2 R/R, You are risking $10 to potentially make $20. For a 1:3 R/R, You are risking $10 to potentially make $30 and so on. In order to successfully make a profit with a 1:2 R/R, the market has to move twice as far to hit profit targets than it does to hit your stop loss. In order to successfully make a profit with a 1:3 R/R the market has to move three times as far to hit your profit targets than it does to hit your stop loss & so on.. By default, the further price has to move to hit your profit target, the less likely it is for the trade to be successful, ultimately lowering your win %. With that said, it is important to note that a lower win % does not necessarily mean the strategy is more or less profitable than a strategy with a higher win %. Lets look at some examples below: Example 1- You are using a strategy that has 1:3 R/R and a 30% win %.. In this example we are going to look at 100 hypothetically trades. 70 losing trades at $10 each (70 x $10 = -$700) 30 winning trades at $30 each (30 x $30 = $900) Net Profit/Loss = $200 Example 2- You are using a strategy that has a 1:1 R/R and a 60% win %.. Again based on 100 hypothetical trades. 40 losing trades at $10 each (40 x $10 = -$400) 60 winning trades at $10 each (60 x $10 = $600) Net Profit/Loss = $200 Looking at the examples above, we can see that both strategies made the same amount of money even though one strategy wins 30% of trades, while the other wins 60% of trades! Of course there are small variations to the examples above as not every strategy with a 1:3 or 1:1 R/R will have a 30 or 60% win/loss ratio however the overall concept stands and should be taken into consideration whenever developing or trading ANY strategy. In my last tutorial- " Simple Patterns Tutorial, The Correct Way To Trade Double Tops " I asked you all to vote on which double top you thought would perform the best out of the 3 common double top formations shown above.. Each top received votes however, top # 2 received the most votes. The answer to this question may have surprised you however, it will be highly beneficial to your trading! As always I hope this was helpful, the information shared in this educational post regarding risk/reward is an extremely CRUCIAL aspect of risk management and remaining consistently profitable so be sure to read over everything multiple times if need be. Please give this a thumbs up if it was helpful and you would like me to post more material regarding risk management. Also feel free to comment below or message me with any questions you may have. If you would like access to a free position size and risk calculator that I personally use myself, please use the link below to request yours goo.gl OR Visit tradersnsights.com/calculators-tools
Education
by Alec40
4
Simple Patterns Tutorial, The Correct Way To Trade Double Tops In this short tutorial, we will look at the three most common Double Top formations along with how to properly trade them and when/where they typically appear on a chart. Double Tops work very well as trend continuation patterns for the obvious reason that you are trading with the underlying trend (strength) in the market however, Double Tops can also be a great tool for identifying and trading trend reversals. I do not recommend trading these patterns as reversals at every support or resistance level, as trading this way will most likely not be a consistently profitable trading strategy. One method to trading these patterns as reversals is to use higher timeframes to identify important price levels. For Example- You may use the Daily chart to identify important support/resistance structure levels while using the 1hr chart to actually identify and trade the double top itself.. Every strategy should have something called conditions and criteria's for entry.. If you follow my work, you have heard me say this in the past. In the case of this example, A daily level of structure Support/Resistance would be our condition and a double top on the 1hr chart would be our criteria for entry.. You rules should state this: Condition: 1) Price must retest a daily level of support or resistance in order to look for entry criteria. Criteria: 1) After price has retested a daily level of support/resistance, I am allowed to look for a double top entry on the 60 minutes timeframe. -See example of this exact trade at bottom of description (Chart 4 and 5) Chart One: Most Common Double Tops Chart Two: Examples Of Double Top Reversals & Trend Continuation Chart Three: Double Top Trade Examples Chart Four: Daily Retest Of Support/Resistance: Chart Five: Double Top On 60 Minute Timeframe: Often, you will notice that price is up-trending on the daily chart but down-trending on the hourly charts. Many traders get confused regarding how to handle this confliction of trend.. One way to handle this is by doing what is stated above. Use a higher timeframe like the daily chart to find important price levels, and use a lower timeframe like the hourly or minute charts to trade at these levels. Just because the daily trend is up does not mean we cannot trade a double top reversal on the 1hr chart as that timeframe may be down-trending in a perfectly healthy daily uptrend.. I hope this was explained clearly, please feel free to ask me any questions you have in the comments below or via private chat & I will be happy to help. Also please let me know what double top you think is the best to trade (see chart 3) in the comments below. I will do a follow up lesson to answer this question I am asking you. I think the answer may surprise you & know it will be a AAH-HHA moment in your trading journey! If you would like to put in a request regarding what trading content you'd like to learn more about, please use the link below to submit a vote for future trading tutorials and topics! tradersnsights.myshopify.com Free Position Size Calculator: goo.gl TradersNsights Facebook: www.facebook.com Thanks Traders, as always I hope this was helpful to you!
Education
by Alec40
8
XRP : example of double top with pullbackMy previous idea (October 11, 2018) on Tradingview already had a double-top pattern with pullback running on XRP. We can see that we had a double top of the same height signaling a resistance (excluding the very fast wick of September 21, 2018 since it was immediately corrected) With this similar height of the two tops, this makes it possible to objectively validate the figure in double top. The central hollow between the two tops gives us the basis of a support line called neckline. The overly abrupt uptrend on the formation of the first summit was therefore defeated by the inability of investors to form new higher and higher highs. Which in terms of market psychology allows us to interpret this as a form of capitulation on the part of the bulls. Prices are stuck under horizontal resistance, showing signs of weakness, providing an opportunity to short the market as I proposed in my previous ideas. Then after break, a small return of the courses was formed on the neck line, what is called pull back, as already represented on my idea of October 11, 2018. The interest of this chartist configuration is to show the shortness of the buying current and it is then possible to determine a downward objective substantially equal to the height of the double top vis-a-vis the neckline (see my differences price quoted on this chart). Here, the goal is clearly a return on the old support of XRP, and, that being solid, to consider a possible rebound. It's important to note that we attended on October 15, 2018 at a crypt scene hit: Bitfinex stable-coin, Tether (USDT), recorded a sudden drop of more than 15%. This inevitably created a panic movement and a muddy effect communicating to Bitcoin and the set of Altcoins (the latter being totally dependent on Bitcoin fluctuations), including on XRP. Thus, the fall I was waiting for Pullback on XRP was stopped by a green candle, forming somehow an elongated pull back. But for all that, I don't think that this succinct and totally artificial event could invalidate the sales signal given by this double top pattern. However, it's crucial in the small world of cryptocurrencies to note how much Bitcoin, along with its stable-coin Tether, is still the barometer of all altcoins: a turnaround figure as obvious as it is on XRP can therefore be disabled at any time, or at least delayed (lengthened in time), by instability on Bitcoin (and Tether). Finally, it is also possible to confirm the validation of this chartist pattern with the analysis of transaction volumes: with a tendency to weaken during the formation of the second peak and to re-increase with the ensuing bearish reversal (slight runaway sales).
BITFINEX:XRPUSDEducation
by MaxHodler
3
Education post 10/100 – How to trade double bottom pattern?Double Bottom The double bottom is also a trend reversal formation, but this time we are looking to go long instead of short. These formations occur after extended downtrends when two valleys or “bottoms” have been formed. You can see from the chart above that after the previous downtrend, the price formed two valleys because it wasn’t able to go below a certain level. Notice how the second bottom wasn’t able to significantly break the first bottom. This is a sign that the selling pressure is about finished, and that a reversal is about to occur. The price broke the neckline and made a nice move up. See how the price jumped by almost the same height as that of the double bottom formation? Remember, just like double tops, double bottoms are also trend reversal formations. You’ll want to look for these after a strong downtrend.
Education
by GroundStoneHoldings
Education post 9/100 – How to trade double top pattern?The double top pattern is one of the most common technical patterns used by Forex traders. It’s certainly one of my go-to methods of identifying a potential top. Just as the name implies, this price action pattern involves the formation of two highs at a critical resistance level. The idea that the market was rejected from this level not once, but twice, is an indication that the level is likely to hold. However, as simple as that may sound, there are a few critical things that must be present for this topping pattern to be useful (and profitable). By the time you finish with this lesson, you will know exactly how to identify a double top as well as how to enter and exit the pattern to maximize profits.
Education
by GroundStoneHoldings
Double TOP - Reversal PatternDouble top is a reversal chart pattern which means the actually uptrend will be changed to bearish.In this chart pattern we see consecutive double price peaks This patern occurs at the top of an massive uptrend.After reaching a high like 44-60 weeks high(for exemple) the price is moving to make another higher high but in this second peak bulls slowly will lost their confidence and also volume is still low The bearish chart pattern is confirmed when the price breaks down below the low point of through Often traders is started sell-off which will result into a huge red volume candle and also a short term coin-capitalization Top of these peaks wll be turned into a huge long term resistance
BITFINEX:BTCUSDEducation
by CryptoRomaniaTD
How NGAS reacts with harmonic patterns -- hindsight challenge(1)One thing that the analysts in this business will be challenged forever is about hindsight. Even the simplest single EMA system can look outstanding when it comes to the happened candles. While, for a mature system trader, what we really focus on is two questions: 1. "Do the patterns match the definition?" 2. "What exactly is the trade? (at least with an entry and a stop loss) " 3. "Is the trade triggered" One of these 4 trades is a simple hindsight that didn't really match the definition of the pattern, Let's try to point out which one it is if you know exactly how these trades work yo~!!
FX:NGASEducation
by Trader_Joe_Lee
GBPUSD: How To Spot This POWERFUL Setup Like We Did! +350 pipsPsssttt!!! Want to know how it is that we caught this BIG drop down and are now in profit over +350 pips? Yes? Then read on! This setup does repeat itself A LOT! If you can spot it, maybe you can bank pips like my subscribers and I do! First, you need to know in what wave are prices in. If you look at the Daily chart, you see that I marked off that BIG move up as a 5-wave which could turn out to be a wave (1) or a W. For now, that isn't important. Only that the current move up is impulsive which wave 1's and W's both are. If you take a close look at my overall wave count for that impulsive move up, you will notice that where prices are now is all part of a final wave (v) of that possible (1) or (W). And within that wave (v), prices completed a strong wave iii which formed the first peak of a double top. Of course we didn't know that it would become the first peak of a double top at the time that wave iii completed. But that also doesn't matter to this pattern to know that yet. So from that wave iii peak prices dropped and that drop was corrective so we could guess that the wave iii ended. But after that drop, prices began moving back up reaching the same price level as that wave iii peak before. At this point, could you tell that it was going to be a double top? Of course not! In fact, at that time, this is how I was looking at it: But because at that moment, prices were needing to break over the resistance formed by the wave iii peak, that wasn't a time to BUY or SELL! It was a time to sit and watch and be PATIENT! So we waited and 3 days later, this is what happened. Lo and behold...a POSSIBLE double top was forming: This is the way it looked on the 4HR chart at that time.....a very good probability it was a double top! : Now when I saw this on the 4HR chart, I knew with high confidence that my count was wrong and I had to adjust it to this one which makes it a flat wave iv: Now here are the 2 "ingredients" to this setup that you need to know in order to trade it: 1. that prices are in a correction (which this is) 2. a SOLID double top is in place on the Daily TF and confirmed on the 4HR TF (which at this point although not confirmed is nevertheless already there. Make SURE you know what the rules of a double top are!) Why this works? When you have a double top, almost 100% of the time, they appear during CORRECTIONS and ARE NOT a signal that a complete reversal is at hand but rather only a retracement is coming. Why is this? Because if you know wave counting, truncated wave 5's are exceedingly rare and if you have a impulse wave (which we do here), in order to have that wave 5 end on a double top, it would need to be a truncated wave 5. So since they are so rare, odds are that the double top DOES NOT represent the end of the impulse wave but rather just part of a correction within that impulse wave. So that is why when I see a double top, I'm thinking a wave 4 most likely. Much more common in wave 4's than 2's since 4's are much more likely to be a flat. Oh yeah, double tops appear in flats. not zig zags. Ok, so we now have a double top in a wave 4 correction. Well, if you look at my previous chart above, you will see that in order to have that wave 4 correction continuing, that means that (in this case) the waves (w) and (x) have already completed with that second peak being the end of the wave (x). Well, guess what follows a wave (x) in a correction? That's right! An IMPULSIVE wave (y)! That means that off of a double top, then next move should be a strong one and of course, it was! And that is how this setup works! It happens over and over again! If you know what to look for! I just told you! Hit me up if you want to learn more! Follow me on my Facebook group and/or Twitter below.
Education
by EverythingForex
3
GBPUSD-M15- The 2618 trade setup (educational)Im closely following price action on this pair. I found this textbook 2618 trade setup. The 2618 trade is essentially a less aggressive approach at entering the classic double top/bottom pattern. It uses trend continuation type of entry in order to get involved in a counter trend opportunity since before entering, the trader seeks confirmation that the trend has reversed. 2-618 stands for a double top/bottom (2), followed by a 61.8 retracement. When looking for this trade setup the trader must first identify a double top/bottom. After a valid double top/bottom has completed, the next step is for price action to break and close past the midpoint of the fore mentioned pattern. After this occurs, the trader will then look for price action to make a retracement of at least 61.8, pushes back into the previous structure support. Traders looking to take the 2618 setup are either looking for a less aggressive approach to enter, when they predict that the market is at a turning point, or looking for a second chance toget involved in a trade that they had previously missed. Best regards.
Education
by FullTimeTrader
2