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Double Top

EURUSD Double-top Is Approaching TargetHappy Valentines Day Traders! Today, we are on the EUR/USD pair. We are looking at the 4-Hour time frame. We are checking back in to see how our EURUSD Double-top trade has played out and we are approaching the target that was set up last week. Remember that we were waiting for the retrace into the neck zone. Well, let’s have a look at the chart. Notice how that retrace came in beautifully before creating that large impulsive bearish candle. We also have a strong bearish volume accompanying it. This volume added some confidence into the position as our entry was on the retrace. Is it too soon to take profits? Well, we always have to make sure that we stick to our strategy as trading is a numbers game. We have to think in probabilities. We can’t go and change every single trade based on how we are feeling. Emotions have a strange way of controlling us. So having said that, we have approached the price structure where the target lies. It’s not quite in there yet, however, if your stop loss was a bit tighter this could have easily been over 1/4 Risk/Reward. I am confident in my ability to wait as that bearish volume is suggesting to me that price still may have some way to fall in that area. Hope you all have a wonderful week and I will be seeing you all on the next one!
Short
by TheVortexTrader
SPX: Could it reverse and fill the GAP at 4,652?Hello traders and investors! Let’s see how the SPX is doing today. First, in the 1h chart, it lost the support level we mentioned yesterday, triggering a bearish reaction, as expected. The correction was quite sharp, but is this a reason to panic? To be honest, I was expecting a sharper correction, maybe to the previous support at the black line, but the index is trying to find support already. Yes, it still could retest the 21 ema and do a Dead Cat Bounce all the way down to 4,453. However, I'm not too convinced of that, and it is important to look at the Futures for more clues: The index hit its previous support today at night, at the 4,456 (red line), and it is bouncing back up nicely. It found a resistance at the 50% Fibonacci’s Retracement, and it is trying to stabilize today. As far as I know, the best moments to buy are near support levels, like red line, and sell near resistances, like the blue line. Given the way the SPX and the Futures are looking, it is plausible to see more upside potential, the question is, for how long it could go up. Regardless of how the index reacts in the 1h chart, I still see the 38.2% retracement in the daily chart as the most important support level for the mid-term. By losing this retracement, it would trigger a Double Top chart pattern, and it could easily slip towards the 61.8% retracement. If we’ll see a Dead Cat Bounce or not, we don’t know yet, as we lack confirmation on the charts. Any comment on that would be just a guess. However, if the SPX breaks the resistance (previous support) at 4,531, this could be a nice false breakout, and the index might trigger a pivot point that could help it to break the resistance at 4,583 and fill the next gap at 4,652. It’ll depend on how the index will close today. I’ll keep you guys updated, as always. If you want to keep in touch with my daily analysis on indices and stocks, remember to follow me, and to support this idea if it helped you. Have a good weekend. Nathan.
SP:SPX
by Nathan_The_Finance_Hydra
2
BTCUSDTPRICE ACTION: • In an uptrend, price action finds first resistance (1), where it reverses direction and goes downwards till finding support (2). • Price action reverses direction from (2) and goes upwards till finding second resistance (3), which will be -around- the same rate of the first resistance (1). • The pattern is completed when price action reverse direction from the second resistance (3) and goes downwards till it breaks the lower support at point (4). NOTES: • After the breakout, retesting the pattern's lower support that turned to resistance is highly possible. • Volume is usually high when reversing from the second resistance (3), as well as when breaking the pattern's lower support. TRADING THE PATTERN • Trade entry: the pattern is traded after price action breaks the pattern's lower support at point (4). • Take profit: identified by measuring the (upper border - lower border) distance, which is the vertical distance between point (2) and either (1 or 3 - according to which one was used to define the upper border), that measurement is then applied from the breakout point (4). • Stop loss: the pattern's support (2) which turned into resistance after the breakout.
Short
by Adam-Robinson
Double Top On EURUSD 4-Hour. Will it play out?Good morning! Today, we are on the EUR/USD pair. We are looking at the 4-Hour time frame. It seems we have a double top at play here. However, I’m not convinced about the neck zone ( Liquidity zone ) We have full (pure) divergence across the MACD. We also have a large bullish volume break-out bar. This could mean that it’s a bull trap and that price will move down further which would be added confluence. However, I want to see further impulse lows closing below the neck zone in its entirety before a retrace up to the top of the neck zone. If this happens then I would short this pair at that point and my targets would be the previous price structure which I’ve shown on the chart. It is a Friday so this could take some time to play out. Either way, it’s one to watch as we can always learn from these patterns. Hope you all have a great weekend and I will be seeing you all on the next one!
Short
by TheVortexTrader
🔴 $SPY Double Top + Let's have a discussion$SPY Double Top + I’ve love to hear your thoughts Alright… going into tomorrow. CPI data at 8:30am Personally, I’m feeling inflation. I have friends that are doctors, nurses, attorneys, and other well paying position and they are feeling it. Realistically where do you guys see the stock market going… ? Where do you see the real estate market going once rates get hiked again…? Will real estate bring down stocks? Will stocks bring down real estate? Are bulls fighting the inevitable when this is far greater potential to the downside? I’m super curious. We’re at an interesting place with technicals… which way will it go… ? Large technicals are collapsing. My bias is short... but I'm open to all sides here... —————— I am not your financial advisor, but I will happily answer questions and analyze to the best of my ability but ultimately the risk is on you. Check out my ideas, but also do your own due diligence. I have a huge tolerance for volatility so please know that. If you’re new to my trade setups please try them on a small scale first. Then go in with a risk you’re comfortable with. I am not a bull. I am not a bear. I just see what I see in the charts and I don’t pay too much attention to the noise in the news. If you want me to analyze any stock or ETF just leave me a comment and I’ll do it if I can. (If I have time) And most importantly… Have fun, y’all!! (\_/) ( •_•) / >🚀
AMEX:SPYShort
by SPYder_QQQueen_Trading
21
EURJPY - Potential Bearish Reversal!Hello everyone, if you like the idea, do not forget to support with a like and follow. As per my last analysis (attached below), EURJPY is sitting around a strong resistance in green so we will be looking for sell setups. on H1: EURJPY is forming a double top pattern but it is not ready yet so we will be waiting for the right shoulder to form (projection in purple) Trigger => Waiting for the right top to form then sell after a momentum candle close below the gray neckline. Meanwhile, until the sell is activated, EURJPY would be overall bullish can still trade higher inside the green resistance. Good luck! All Strategies Are Good; If Managed Properly! ~Rich
Short
by TheSignalyst
12
Local Double TOP or CORRECTION? A key place for BITCOIN !!! 🌖😱Hello everyone, We are located in a key place for BITCOIN, and thus for all cryptocurrencies. We should watch this zone in terms of a possible local Double TOP. In that case, we should expect a drop, then a retest from below at $ 42.5k and a further slide. If the bears are defeated, I expect spikes even for the new ATH! The yellow lines are all the strongest resistances and supports, they should guide you like signposts on the road;) Comment and like, Good luck.
COINBASE:BTCUSDShort
by SayMoney
2
GBPCHF | Perspective for the new week | Follow-up detailsWe witnessed over 200pips move in our direction since my last publication on this pair (see link below for reference purposes) and ...? Fr1.25400 area - Price is currently oscillating within a very sensitive borderline where the probability of bullish and bearish momentum is almost of the same possibility. A significant engulfing candle, either way, could send the price all the way hence the need to have a critical observation coupled with parameters that will give a clue into what direction price is likely to move towards in the coming week(s). Tendency: Downtrend (Bearish) Structure: Supply & Demand | Trendline | Reversal pattern (Double Top) Observation: i. Following the bullish momentum that gripped the market since the 6th of December 2021, the Fr1.254 level has held price "resisted" since mid-January 2022 hereby revealing an underlying strength in favour of the sellers at this juncture in the market. ii. The line drawn under pivot lows reveals the prevailing direction of speed and price action in the last 10 days. iii. However, Buyers have found it difficult to continue the momentum as multiple rejections of Fr1.254 is preventing the price from soaring which puts a dent in my last prediction ( see link below for reference purposes). iv. If we go as far back as 2015, we will notice how the Fr1.254 area has been a major determinant of price as a break above or below normally sends price in the direction of the break (see weekly chart). v. Equipped with this information and observing how selling pressure has increased in the last 22 days ( between the 13th of Jan and last week trading session), my bias is slightly tilting towards shorting the Pound against the Swiss franc in the coming week(s). vi. Double Top: The appearance of an extremely bearish technical reversal pattern forming after price tested Fr1.23 area two consecutive times during last week trading session is giving more credibility to the bearish momentum suspected. vii. To also emphasize the strength of the selling pressure is the drop in demand zone from Fr1.245 to Fr1.242 in the space of 2 weeks. viii. With a Key level identified at Fr1.25, I shall be looking forward to a breakdown of this level which will also coincide with the breakdown of Bullish Trendline. So, what this means is that below Key level remains a comfortable area to short the Pound in the coming week(s). CAUTION: All this being said, should we see a significant breakout of Fr1.254 in the coming week(s) then we shall be reverting to the previous analysis supporting a bullish bias (see link below)... Trade consciously!😊 Trading plan: SELL confirmation with a minimum potential profit of 200 pips. Risk/Reward : 1:4 Potential Duration: 3 to 7days NB: This speculation might be considered to make individual decisions on the lower timeframe. Watch this space for updates as price action is been monitored. Risk Disclaimer: Margin trading in the foreign exchange market (including commodity trading, CFDs, stocks etc.) has a high risk and is not suitable for all investors. The content of this speculation (including all data) is organized and published by me for the sole purpose of education and assistance in making independent investment decisions. All information herein is for your reference only and I take no responsibility. You are hereby advised to carefully consider your investment experience, financial situation, investment objective, risk tolerance level, and consult your independent financial adviser as to the suitability of your situation prior to making any investment. I do not guarantee its accuracy and is not liable for any loss or damage which may result directly or indirectly from such content or the receipt of any instruction or notification therewith. Past performance is not necessarily indicative of future results.
Short
by darcsherry