Double tops and bottoms: how do you measure and trade them?
A double top is two failed attempts at the same high; the double bottom is the mirror. Both need a trigger between the two extremes, and both routinely morph into ranges or continuations.
What's your playbook?
- the tolerance between the two peaks or troughs
- the entry trigger and target projection
- the failure that taught you the most
The chart patterns guide covers structure, targets and failure rates.
Background: Head and shoulders, double tops and double bottoms explained
Reversal patterns are confirmed at a neckline. Learn how head and shoulders and double top patterns form, where confirmation comes and how measured targets are set.
When is a head and shoulders pattern confirmed?
When price closes beyond the neckline, the line through the pullback lows on either side of the head. Before that break, the pattern is incomplete.
How do you calculate a head and shoulders target?
Measure the distance from the top of the head to the neckline and project it from the point where price breaks the neckline. Treat the result as a rough guide.
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