Short
BABUSD
Pretty straight forward Double top setup.
A double top happens when:
1. Their has been over extended movement in price
2. Price hits a peak point it cannot pass
3. Price is rejected from this level, bounces off (forming the neckline), before finally attempting this level one more time
If this is correct, then price should proceed to fail to get support at the neckline and fall for roughly the distance from the neckline to the peak resistance level.
In our case this aligns to roughly to the lower box I have drawn, which comes from a Weekly support on the chart and also the .5% fib retrenchment
A double top happens when:
1. Their has been over extended movement in price
2. Price hits a peak point it cannot pass
3. Price is rejected from this level, bounces off (forming the neckline), before finally attempting this level one more time
If this is correct, then price should proceed to fail to get support at the neckline and fall for roughly the distance from the neckline to the peak resistance level.
In our case this aligns to roughly to the lower box I have drawn, which comes from a Weekly support on the chart and also the .5% fib retrenchment
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