Jesse Livermore Double Top chart pattern strategy – Your Complete Guide to Consistent Profits. When used correctly, it can turn your trading results around. This is a very successful approach to basically trade any type of market. It can be used on your preferred time frame, no matter your trading style.
In this trading guide, you’ll learn how to trade the Double Top chart pattern step by step — that includes specific trading strategies and techniques you can use to profit in the financial markets.
- Download “TraderVersity-DoubleTopBottomSystem” (Zip/RAR File).
- Copy mq4 and ex4 files to your Metatrader Directory …/experts/indicators/
- Copy the “TraderVersity-DoubleTopBottomSystem.tpl” file (template) to your Metatrader Directory …/templates /
- Start or restart your Metatrader Client.
- Select Chart and Timeframe where you want to test your forex system.
- Right-click on your trading chart and hover on “Template”.
- Move right to select “TraderVersity-DoubleTopBottomSystem” trading system and strategy.
- You will see “TraderVersity-DoubleTopBottomSystem” is available on your Chart.
- Rule number 1: Identify the Phase of the Market. The Double Top reversal needs an uptrend.
- Rule number 2: Double Top chart pattern.
- Rule number 3: Allow a maximum of 200 pips variation between the two tops.
- Rule number 4: Sell when Double Top breakout candle closes below the neckline.
- Rule number 5: Take Profit equals 2, or 3 x times the distance in price as measured from the highest peak to the Neckline.
Stop Loss Strategy
- Rule number 6: The stop loss is placed just above the top of the consolidation from which you are entering the short from.
- Rule number 1: Identify the Phase of the Market. The Double Bottom reversal needs a down trend.
- Rule number 2: Double Bottom chart pattern.
- Rule number 3: Allow a maximum of 200 pips variation between the two bottoms.
- Rule number 4: Sell when Double Bottom breakout candle closes above the neckline.
- Rule number 5: Take Profit equals 2, or 3 x times the distance in price as measured from the lowest valley to the Neckline.
Stop Loss Strategy
- Rule number 6: The stop loss is placed just below the low of the consolidation from which you are entering the short from.
- The double top reversal is one of the most common patterns. The fact that the double top pattern appears so often and it can offer big selling opportunities is strong proof that the price is not random and it can be exploited for big profits.
Best CCI Scalping & Day Trading Strategy – Using the CCI as a trend indicator is ideal when combined with other trend indicators such as moving averages. This can help you to pick bottoms in a rally or tops in a decline. In other words, using the CCI as a trend indicator, you can time your entries within a trend.