The double top is one of the most popular patterns in trading. It's a reliable reversal pattern that can be used to enter a bearish position after a bullish trend. It consists of 2 tops at nearly the same level with a valley in between, which creates the neckline. The second top does not break the level of the first top, so the price retested this level and tried to make a higher high, but failed. Price breaking the neckline and closing below it would complete the pattern.
Conservative traders look for additional confirmation and aggressive traders may enter a bearish position from the second top. The target can be estimated by measuring the height of the pattern and projecting this downwards from the neckline. Common stop levels are just above the neckline, halfway between the neckline and the tops or above the tops. The double bottom is the bullish version of this pattern that can form after a downtrend. A popular variation of this setup is the 2618 trade (as taught by Jason Stapleton) with specific rules for the pattern configuration including where to enter and to exit the trade.
Ashok Leyland has formed double bottom and showing signs of reversal. It has a reasonable PF catching the price frequencies and is available on the LML offering a good entry. It has formed a double bottom with divergence on MACD which is quite reliable setup. Heiken Ashi has turned to Green also. One can buy the stock with the following details
Entry current Price...
1)Double Top Formation
2)Bearish Butterfly pattern
3)Bollinger Band resistance
As shown in chart whenever stock break 2200 level it rapidly moves down and Simple moving average acts as support.
So it can move down up to 2140/2100/2040....
As mentioned in my previous idea, The new high shouldn't sustain and it didn't. Now, formed a evening star on daily chart giving a signal to go short. Rest analysis on the chart.
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Thanks for watching the video and your precious time.
Grasim formed a double bottom chart pattern with central pivot acting as neck line. RSI Bullish Divergence can also be seen. All that is needed is a candle closing above central pivot point with good volume and +DM crossing over -DM.
UPL IS APPROACHING IT'S LONG TERM TOP AS WELL THE 1:1 PRICE PROJECTION FOR THE DOUBLE BOTTOM PATTERN.
IF IT REACHES 833 BE VERY CAUTIOS AND BE SHORT FOR THE NEXT FIBONACCI LEVEL OR TRENDLINE TO ACT AS A SUPPORT. I EXTENDED THE TOP OF FIBONACCI TO 833 IN ANTICIPATION THAT UPL WOULD REACH THAT PRICE.
THERE HAS BEEN NEWS OF INSIDER SELLING ABOVE 760 LEVELS.
THE RECENT UPMOVE IS NOT SUPPORTED BY VOLUMES AND PRICE FACING REJECTION AT THE CURRENT LEVELS.ALSO THERE IS A DOUBLE TOP IN SIGHT FOLLOWED BY A WEDGE WHICH INDICATED PRICE IS LIKELY TO TOUCH THE 1150 LEVELS
the stock has hit resistance trendline followed by negative divergence on the daily and hourly time frame along with a probable double top formation and shooting star on the hourly time frame.Price has also retraced 61.8% from the high and lows of year 2018.Hence one can look for shorting opportunities in the current zone. to be shorted close to 1215 for a better...
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