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As the name implies, double tops are twin price mountains
that peak near the same price, its the opposite of double
bottoms. When price closes below the double tops neckline, it
confirms the dual peaks as valid double top.
The tricky part of technical trading which make it so difficult as all double tops behave differently in the real trading environment. Some double tops break down very fast while some can test your patience and some double tops does not break down at all. When OLAM hit the first double top on 24 June 2019, price did not immediately reversed. The price only break the neckline on 30 July 2019 which is about 5 weeks later.
Conclusion The key point of double tops are bearish reversals of existing uptrend formed by twin peaks near the same price. A reversal chart pattern need something to reverse. If the continuous rise to a double top is small, then do not expect a big drop. |
Singapore
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