Forex Videos

The Double Top Chart Pattern frequently appears at the end of an uptrend and looks like the letter 'M'. The pattern forms as two consecutive highs at the same or almost the same price level. The two highs are separated by a retracement that is also called the valley. The neckline of the Double Top Chart Pattern is drawn at the lowest low of the valley. Looking at the GBP/AUD 60 min chart, after an extensive move to the upside the bulls lose strength and bears take over the market. Price then retraces to the downside forming the valley. We draw the neckline at the lowest low of the valley. The bulls take over again pushing price to the same or almost the same price level of the previous high. Bears then take over a second time pushing price further down and finally breaking the neckline to the downside. We enter a trade only after the double top pattern is completed and price closes below the neckline. The stoploss will be above the 2 highs of the doublt top of the double top. Profit target is measured by taking the height of the actual pattern and extending that distance down from the neckline