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.
Price has formed the big W pattern and also broken the intermediate term Trend line so one can conclude that downrend is over now and prices are supposed to move up. Prices have retested the down sloping trend line from above and bounced back. It is getting some resistence at the previous high level so one can use the retrace for a good entry. One can invest in ...
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1.Indicators are showing bullish signals.
2.Double bottom pattern formed and breakout done.
3.Weekly MACD crossover may happen on upcoming weeks(If weekly closing above 116,it may go further upside)
Vijayaraghavan.K,
Kovilpatti.
Trade Setup
1) Piramal Enterprises had formed a double bottom in daily chart.
2) However, it failed to cross the neckline and instead seems to have formed a double top.
3) Also, an almost shooting star pattern has been formed followed by a bearish engulfing pattern.
All above factors signal for it go to its resistance levels @ 2030-2010.
Trade Setup
1) Piramal Enterprises had formed a double bottom in daily chart.
2) However, it failed to cross the neckline and instead seems to have formed a double top.
3) Also, an almost shooting star pattern has been formed followed by a bearish engulfing pattern.
All above factors signal for it go to its support levels @ 2030-2010.
Any inputs will be highly ...
The stock seems to have reversing the downtrend. It has formed double bottom with higher RSI reading and now trading above the Neckline. It is offering a good Risk to Reward trade as details given below
Entry 221
SL 212
Target 250 - 253 - 259
RR Ratio : 3
RSI is also confirming the trade decsion.
Disclaimer : All ideas are my personnel view. Please take ...
Nicely formed double bottom pattern gave breakout and and trading decisively above the neckline. One can buy the stock now for a double bottom pattern target of approx 1900. which offers a reasonable Risk to Reward trade. RSI above 50 is also confirming the trade.
Entry 1810
SL 1770
Target 1880 - 1900
Disclaimer : All ideas are my personnel view. Please take ...
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