Double Top definition & 2618 trade setup ®
What is a Double top, and how to trade it?!
1. We should see a V shape between the two tops;
2. Look left and search for previous structure and eventual PRZ (price reversal zones);
3. The Highest High from the retest candle, MUST meet the previous Highest Close; (it can go above the HH)
4. The retest candle, MUST CLOSE below the previous Highest Close; (CRUCIAL)
5. Once the price breaks the previous structure, it will give us a confirmation of the double top;
6. Price must find some support above previous structure;
7. Wait the 61.8% retracement; (It can never happen, indeed, and keep with the free-fall, and that's the risk of not taking this trade aggressively from the real top and wait a confirmation); -I would suggest staying out of the trade if necessary*
8. Sell the 61.8% with one eventual AB=CD basic pattern as target, and eventualy a deep further downward movement (check previous structure for TP targets).
Safe trades ;)
Trading Jazz
1. We should see a V shape between the two tops;
2. Look left and search for previous structure and eventual PRZ (price reversal zones);
3. The Highest High from the retest candle, MUST meet the previous Highest Close; (it can go above the HH)
4. The retest candle, MUST CLOSE below the previous Highest Close; (CRUCIAL)
5. Once the price breaks the previous structure, it will give us a confirmation of the double top;
6. Price must find some support above previous structure;
7. Wait the 61.8% retracement; (It can never happen, indeed, and keep with the free-fall, and that's the risk of not taking this trade aggressively from the real top and wait a confirmation); -I would suggest staying out of the trade if necessary*
8. Sell the 61.8% with one eventual AB=CD basic pattern as target, and eventualy a deep further downward movement (check previous structure for TP targets).
Safe trades ;)
Trading Jazz
Penafian
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