What is a double top pattern?

A double top is a bearish chart pattern that forms after an uptrend, characterized by two peaks at approximately the same level, followed by a breakdown below the neckline, signaling a reversal to the downside.

How do I trade using the double top pattern?

To trade the double top pattern, wait for the price to break below the neckline (the support level between the two peaks), confirming the reversal. Enter a short position once the breakdown is confirmed, ideally with increased volume.

How reliable is the double top pattern?

The double top pattern is generally considered reliable, especially when it occurs after an extended uptrend. However, it is important to confirm the pattern with volume and other technical indicators to avoid false signals.

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What is DOUBLE TOP?

DOWNSIDE DEVIATION

Downside Deviation measures the standard deviation of negative returns below the risk-free rate or a target return, providing insights into downside risk.

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