"IntelliTraders" 
Double Top Setup

Submitted by MagicMan on Tue, 12/28/2010 - 03:55

The Logic

The Double Top trading setup makes it possible to identify the very top of the underlying market before price drops to lower lows. When mastered, it offers very high reward with low risk.

 

Chart Setup

The beautiful thing about the Double Top setup is that it relies ONLY on price action. You don't need any indicators at all on the chart. 

That said, it can be very beneficial to add indicators of your choice to make a Double Top setup more reliable.

 

The Trading System

The Double Top setup is a SELL setup, because the trader believes price will go down after the double top forms.

Sell Setup

STEP 1
Price Breaks an UPTREND Trend Line
Once the uptrend trend line is broken, it's an alert to watch for a change in trend.

STEP 2
Price Bar tests previous significant swing high...
This means price is testing a resistance level. If the resistance is weak, price will continue upwards. However...

STEP 3
Price FAILS to make new highs and declines...
When price tries to make new highs, but meets strong resistance, it will fail and decline. The double top is confirmed when the bar makes a lower low than the previous bar.

Double Top Training Video

Example Charts

Double Top SELL Setup

Chart

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Tue, 09/20/2011 - 15:55
#2
MagicMan
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Joined: 2010-04-16
Posts: 488
Points: 1280
This indicator is custom. If

This indicator is custom. If you're interested, please contact our support staff. But, just to clarify, you don't need to have any indicators for this double-top setup.

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Sun, 09/11/2011 - 04:27
#3
pnav006
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Joined: 2011-09-07
Posts: 3
Points: 120
Cool. But how do I get that

Cool. But how do I get that LBR cross indicator?

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