What is a Flat Top?
A Flat Top occurs when there is a clear (flat top) and a slope of higher lows, indicating the upward trend:
As you can see in the chart above, the pattern looks like a triangle with the top of the triangle being the horizontal resistance and the bottom is the upward sloping support . That's why this pattern can also be referred to as the .
How to trade the Flat Top Breakout?
Enter after the , the "flat top" has just been broken with increasing .
Place your stop loss just below the recent swing low.
Use the height of the flat top/triangle to determine your profit target or objective.
In summary, the flat top breakout is a pattern that is fairly easy to identify and provide a good risk to reward trading opportunity.
Using the information covered in this post will help you with a trading plan that, when executed properly, can offer good profits, manageable risk and a higher probability of success.
If you found this post informative and helpful, please give a like and or share. Leave a comment if you have any questions.
And until next time, good luck with your trading!