Double Tops Reversal Strategy

Double Tops Strategy

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

Double tops upwards stock trend reversal trading strategy is considered complete once stocks price makes second peak and then penetrates lowest point between highs, known as the neck line. The sell stock signal from this up stock trend reversal trading strategy occurs when the stocks market breaks-out below neckline.

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

However, Double tops upwards stock trend reversal trading strategy is only completed once the neck-line is broken and stocks market moves below the neckline. Neckline is just another name for the last support level formed on stock chart.

Summary:

• Double tops upwards stock trend reversal strategy Forms after an extended move upward
• This Double tops upwards stock trend reversal strategy formation indicates that there will be a reversal in the stock market
• We sell when stocks price breaks below the neck line point: see below for explanation.

Stock Trading Up Stock Trading Trend Reversal Strategy - Double Tops Reversal Strategy

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

Double Top Stock Trading Trend Reversal Stock Trading Strategies