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Double Top

Basic Pattern: explanation of DOUBLE TOP. 1) Prior Trend: For the double top pattern, the prior trend must be up- trend for several months. 2) First Peak: Normally, this peak will be higher peak of current trend. 3) Neck Line: From the prior trend, neck-line should be 10% to 30% normal case. The lows are sometime Rounded or drawn out a bit which can be sign of low volume and low demand . 4) Second Peak: Price moving from neckline to second peak will be low volume. Ususally second peak within 3% of the previous high (1st peak) is called 2nd peak. 5) Decline from peak: Price decline after reaching the 2nd peak with high volume and marke a GAP or two.
NSE:SBINEducation
by Trade-Technique
74