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Double Top

Abbott India Technical AnalysisHello Guys , Today I Have The Technical Chart of Abbott India it is in the Double top from a few days ago but now I think it will go Down because it has made a bearish signal after a very long Bull trend and now lets talk about the target . So its target could be 16627 . BTW It is Based on your Risk To trade on it or not and Don't Forget to Like the Idea and Follow The Channel for Regular Updates and Regular Ideas and also Now i am again Going To Make Regular ideas Bye-Bye . Time Frame :- 1 hour Patterns Name :- Double Top Stock Name :- Abbott India Based on Your Own Risk this is only to Show you the Current Pattern . We are not responsible for any profit or loss .
NSE:ABBOTINDIAShort
by UKnowN_ThE
'CONTINUE' trading with 'CONTINUATION' pattern_2nd Edition_!!!In previous idea of continuation pattern, which comprise explanation of some continuation patterns like triangles, flags and pennants it was stated that in next post I'll be back with patterns such as head & shoulder , double top and bottoms and we're back. As we have discussed in the previous section, that market can be either in trending phase or in a range-bound phase. No trend generally lasts forever in the market. After prolonged or medium or shorter duration up and downtrend, the market often reverses and a move starts in the opposite direction of the prior move. Often we find that well defined geometrical patterns are formed in the chart which provides good indication of price reversals. These patterns are called reversal classical chart patterns. When they are formed as a bullish reversal pattern they are said to be part of accumulation. On the other hand if they are formed at the top of a price move just before bearish reversal, then they are part of distribution. However, a geometrically shaped consolidation does not necessarily mean price reversal. Often price resumes the erstwhile trend post the consolidation move. These are called continuation classical chart pattern. We will discuss about few of the classical chart patterns in the following section. -> Head & Shoulder -: Head and Shoulder pattern is a bearish reversal pattern. This pattern appears after an uptrend. This pattern is formed with three consecutive tops with middle one being higher than the other two. The middle top is called the head and the two side peaks are called the shoulders. On joining the intermediate troughs, we get the neck-line. On ultimate break below the neckline, usually a short trade is taken with a stop-loss above the top of the nearest shoulder. The target is usually considered as the distance between the neckline and head, projected from the point of break. If the volume in the down leg of the right shoulder is on the higher side and break happens with high volume, the conviction is on the higher side for the reversal. An Inverse Head and Shoulder is just mirror image of the Head and Shoulder pattern. This should appear after a sustained down trend, the rule of stop loss and target are similar. This often acts as a very effective bullish reversal pattern. -> Double Tops and Bottoms -: These chart patterns are well-known patterns that signal a trend reversal – these are considered to be one of the most reliable patterns and are commonly used. These patterns are formed after a sustained trend and signal to chartists that the trend is about to reverse. These patterns are created when price movement tests support or resistance levels twice and is unable to break through. These patterns are often used to signal intermediate and long-term trend reversals. Double top: Double bottom: -> Mechanism of Continuation Pattern -: Continuation patterns provide some logic to the price action. By knowing the patterns, a trader can create a trading plan to take advantage of common patterns. The patterns present trading opportunities that may not be seen using other methods. Unfortunately, simply because the pattern is called a "continuation pattern" does not mean it is always reliable. A pattern may appear during a trend, but a trend reversal may still occur. It is also quite possible that, once we have drawn the pattern on our charts, the bounds may be slightly penetrated, but a full breakout does not occur. This is called a false breakout and could occur multiple times before the pattern is actually broken and a continuation or a reversal occurs. Rectangles, due to their popularity and easy visibility, are highly susceptible to false breakouts. Patterns can also be subjective, as what one trader sees is not what another trader sees, or how another trader would draw or define the pattern in real time. This is not necessarily a bad thing, as it can provide traders with a unique perspective on the market. It will require time and practice for the trader to develop his or her skill in finding patterns, drawing them and formulating a plan on how to use them. My Observation -: These geometrical patterns are formed after a trend in that particular stock, it generally resumes the previous trend after being out of the pattern but some times it reverses the previous trend hence, it is advised to wait for the conformation to play the pattern. And we can use RSI for conformation i.e. if you are seeing pattern breakout then just check if RSI is greater than 60 and if not than the chances of fakeout is more also in case of breakdown just check if RSI is below 40 else it can reverse. #Enjoy_trading
NSE:NIFTYEducation
by Chaser30
Shorting Idea Persistent SystemPersistent Systems Stock after forming Double top Pattern and now looks week Stock trading at its support levels and looks week If market trend will be like this then Stock can give breakdown below 3650 level. Keep Short term targets of 3575 & 3465. Also take short Positional only if stock gives a day closing below 3650 levels Keep Trailing Stop loss to maximize your profit ---- Note: Above levels are for education purposes only Do your own analysis before taking any trade Please Like & Follow
NSE:PERSISTENTShort
by Jordan_n-
Research Report(TA+PA) & Trade Plan: Usha MartinUsha Martin 13 Feb 2022 CMP 90.60 - Inv Head & Shoulder pattern with large base - BO of large base(consolidation/accumulation) on 26 Apr 2021 - minor RT of the neckline in Jun 2021 & upward move continued - price is again consolidating at previous long term swing high which is acting as resistance - micro double top 08 Nov 2021& 10 Jan 2022 with micro triple bottom 15,29 Nov 21 & 24 Jan 22 in price range 80-102 Conclusion:- immediate BO in either direction can give quick 20-25% with high probability of BO to higher targets, levels and targets are mentioned on the chart Inv Head & Shoulder setups: Swing Trade Continuation Head & Shoulder: Swing Trade Some Long Term Bets with quick Targets Views are for ‘’EDUCATIONAL PURPOSE ONLY’’ trade at your own risk. "Always Respect Risk" Happy Trading Jai Hind
NSE:USHAMARTLong
by DhirajSinghBais
3
Titan... pin bar & double top intradayTitan pin bar and double top intraday given a free fall from 2380 to 2325 During the intraday if one develops the habit of reading candlesticks and patterns than the dependency on indicator will reduce and more clear picture of movement can be seen without confusion loading of many indicators makes difficult to take action.. keep your chart clean and neat... load only needed information which makes you comfertable while trading.. views are just for EDUCATIONAL...
NSE:TITAN
by MDstockmagic
Double Top - Full ExplanationA Double Top is considered a bearish signal, indicating a possible reversal of the current uptrend to a new downtrend. Sometimes called an "M" formation because of the pattern it creates on the chart, the Double Top is one of the most frequently seen and common of the patterns. The Double Top is a reversal pattern of an upward trend in a financial instrument's price. The Double Top marks an uptrend in the process of becoming a downtrend. A Double Top consists of two well-defined, sharp peaks at approximately the same price level. The two tops are distinct and sharp. The pattern is complete when prices decline below the lowest low in the formation. The lowest low is called the "confirmation point". The slowing momentum may be evidenced through a lagging peak on an oscillator like RSI. Though not required, the market may break above the first peak, even if briefly. A slight and temporary break above the first peak is preferred as it may excite the bulls only to reverse and trend lower. The neckline is formed between the price low of the valley between the two peaks. A break below this neckline will confirm the double top pattern. The bearish confirmation is specified by a break in the key price support level (neckline) situated at the low point between the ‘tops’. Important Characteristics Following are important characteristics for a Double Top. Uptrend Preceding Double Top The Double Top is a reversal formation. It begins with prices in an uptrend. The trend upwards should be fairly long and healthy. Time between Tops Generally, the longer the time between the two tops, the more important the pattern is as a good reversal signal. Decline from First Top The deeper the trough between the two tops, the better the performance of the pattern. Volume Volume tends to be heaviest during the first peak and lighter on the second. It is common to see volume pick up again at the time of breakout. Pullback after Breakout A pullback after the breakout is usual for a Double Top. The higher the volume on the breakout, the higher the likelihood is for a pullback. Two Peaks at Different Levels Sometimes the two peaks comprising a Double Top are not at exactly the same price level. This does not necessarily render the pattern invalid. Some analysts point out that investors should be less concerned if the second peak does not hit the high of the first peak. Trading with Double Top: There are certain rules when trading with Double Top chart patterns. Firstly one should see the market phase whether it is up or down. As the double top is formed at the end of an uptrend, the prior trend should be an uptrend. Traders should spot if two rounding tops are forming and also note the size of the tops. Traders should only enter the short position when the price break out from the support level or the neckline. Example: From the below example of the 15 Min chart of NIFTY we can see how bearish reversal takes places after the formation of the double Stop Loss & Target : In the case of a Double Top chart pattern, the stop loss should be placed at the second top of the pattern and can be trailed at the pullback high as price moves lower but this will be a bit aggressive. The price target should be equal to the distance between the neckline and the tops. Hope you all learnt from this post. Share with the community if you liked it. Regards Omahto
NSE:NIFTYEducation
by Omahto
17
Technical Analysis of Cognizant Technology Solutions ( CTSH )Disclaimer: I don’t own shares of Cognizant Technology Solutions ( CTSH ) The below analysis is not a trading or investment recommendation & is only for learning purpose. 1. CTSH entered a long-term uptrend in Nov’21 with price closing above the 200MA. 2.Price broke the previous high around $83 after having retraced 38% to $66. 3.Price has formed a double top structure on the daily chart with the neckline around $80 showing failure of bullish momentum to break above the previous high around $92 & sustain higher. This is also supported by unconfirmed RSI bearish divergence on the daily chart ; however, price hasn’t broken the trendline yet. A break of the trendline would confirm the bearish divergence between price & RSI . 4.Price is receiving support around the high of the previous consolidation area around $82 indicating no strong interest on the seller’s side to break the $82 support & take it lower. 5.Price volume analysis indicates that the current up move $66 to $92 has not been backed by a significant increase in volume . A strong uptrend is usually supported by a large increase in volume igniting the move followed by bouts of high volume to keep the momentum intact, both of which are missing. 6. For the next leg of up move, price needs to have a close above $93 with increased volume & sustain itself. 7. A break below the neckline around $80 could push the price down to the 200MA around $77 being the first level of support. 8. In the long term after the resistance at $93 is taken out, the stock should eventually reach $109 completing an AB=CD pattern. All the best!
NASDAQ:CTSH
by Venkat_014