Double Top Reversal Indices Trading Strategy

Double Tops Trading Strategy

Double tops upward indices trend reversal trading strategy is a reversal indices pattern that forms after an extended upward indices trend. As its name implies, this reversal strategy is made up of two consecutive peaks that are roughly equal, with a moderate trough in between.

Double tops upward indices trend reversal trading strategy is considered complete once stock indices price makes the second peak and then penetrates the lowest point between the highs, called the neckline. The sell stock indices signal from this up indices trend reversal trading strategy occurs when the stock indices trading market breaks below the neckline.

In Indices, Double tops upward indices trend reversal trading strategy is used as a early warning stock indices signal that a bullish upward indices trend is about to reverse.

However, Double tops upward indices trend reversal trading strategy is only confirmed once the neckline is broken and the stock indices trading market moves below the neckline. Neckline is just another name for the last support level formed on the stock indices chart.

Summary:

• Double tops upward indices trend reversal trading strategy Forms after an extended move upwards
• This Double tops upward indices trend reversal trading strategy formation indicates that there will be a reversal in the stock indices trading market
• We sell when stock indices price breaks below the neckline; see below for explanation.

Indices Trading Up Indices Trend Reversal Trading Strategy - Double Top Reversal Indices Trading Strategy

The double tops look like an M-Shape, the best reversal stock indices signal is where the second top is lower than the first one as shown on the stock indices trading example explained and illustrated below, this means that the reversal stock indices signal can be confirmed by drawing a downward indices trend line as shown below.

Double Tops Indices Trend Reversal Indices Trading Strategies