Double Tops Eve and Eve from free forex signals
Double Tops, Eve & Eve from free forex signals
Two peaks at about the same price level. Both peaks have wide, rounded looking tops
Upward price trend. Since we are dealing with tops, price must trend upward leading to the pattern and leave trending downward. Although that description may sound simple, a study of twin-peak patterns found that 65% climbed away from the pattern instead of dropping down to the confirmation line. The upward price trend leading to the double top need not be long
Top shape Both Eve peaks should appear rounded and wide, not made of a single, narrow price spike. The two peaks
should look the same.
Valley between tops Patterns with a large dip (a tall pattern) perform better than small (short) ones. The valley depth usually measures in the 10% to 20% range, but allow exceptions.
Top high prices Top to top price variation is small, usually 0% to 3%, but allow higher differences. Top separation Tops should be at least a few weeks apart with most falling in the 2–6 week range.
Confirmation price Confirmation is a close below the lowest low between thetwo tops. It confirms the twin top as a valid double top.
The confirmation price is also the breakout price
forex signals take profit and Measure rule
Compute the pattern height from the lowest low between the
two tops to the highest peak then divide in half. Subtract the
result from the lowest low. The result is the target price. Prices hit the target 73% of the time in a bull market, 76% in a bear market.
forex trading signals tips
Wait for breakout Wait for a close below the confirmation point before selling—usually.
Wait for trend change If you can determine when the forex bottoms or if the pattern busts, then buy.
Select patterns in a bear market for the best average decline
Pullbacks hurt performance, so check for underlying support
Tall and narrow patterns perform best
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