About this image :-
In this image you can see that a double top pattern is form and than price will decreases after some time so in this post we learn about how to plan our trade in this situation.
Welcome to this post and now keep learning and careful learning.
What is Double Top pattern in trading :-
When price make two top in same line or same range that is called double top pattern.
Here, double top means two top in simple way and it is a simple pattern if you know its use otherwise may be it is not simple for you.
In double top pattern the most this is practice nothing more if you have good practice than you can make money using this pattern.
Now,
If you want to more knowledge than you can keep learning, in this post we discus only double top pattern with full knowledge.
How to find double top pattern in live market :-
If you want to find double top pattern in live market than you can follow some steps.
The first step is open your top 500 stocks list in any charting software.
The second step is start searching two top making pattern live our post image.
The third step is if any stock making pattern like our post image than mark that stock.
The fourth step is make drawing on that chart which is make double top pattern.
The fifth step is match and watch this chart with our post image and see both image are near to similar.
These are five steps with the help of this you can easily find double top pattern in live market.
How to trade using double top pattern :-
If you want to trade using double top pattern than first to first find double top pattern and mark it and also see daily that chart which is form double top pattern.
When you see that chart in live market than wait for any big movement and here a things which is must for follow.
The main thing is if you are doing swim trading than you must need to wait for retest or consolidation but if you are doing intraday trading than no need to wait see your price action if price action saying bearish than you can.
According to price action you can take your decision. This way you can trade using double top pattern.
When can sell using double top pattern :-
If you want to sell using double top pattern than the most thing which is need for every trader is price action and also with the help of price action.
You can take decision if your price action is saying bearish pattern than you can sell using double top pattern.
So first to first don’t make virtual pattern in your mind wait for making pattern on chart and when chart make pattern than according to chart or price action you can sell.
This is the main thing with the help of this you can sell using double top pattern.
Can we buy using double top pattern :-
No, you can’t buy using double top pattern.
Because the double top pattern is bearish pattern not a bullish pattern so when form bearish pattern you can only take position to sell side not buy side.
So, when form double top pattern on chart than with the help of double top pattern you can’t buy due to bearish pattern.
How to find entry point :-
In double top pattern when form double pattern than wait for any trap like consolidation if form any consolidation or break neckline like our post image.
Than this nick line breakout or after this consolidation wait for red candle if chart form red candle with closing than this is your entry point in double pattern.
This way you can find easily your entry point on chart and this is a original method with the help of this you can also enter on right time in your trade.
How to find target point :-
Here, if you want to find your target point than you can take help your support or resistance first to first draw your nearest support or resistance.
Than with the help of this support or resistance you can choose your target otherwise you can use your round figure number like 10 % out of my capital.
This way you can choose your target point and also you can make money using this method. So follow this method and make profit.
How to find stop loss point :-
If you want to find stop loss point and also you can take help your support or resistance with the help of support of resistance you can easily find your stop loss point.
If you want to find random stop loss than you can help your entry point like mark your entry candle low or high and see your previous candle also mark high and low.
This previous candle high is your stop loss when you are selling stock and also when you set stop loss in your system than try to give more than 5 to 10 point due to market movement.
This way you can find your stop loss point in live market with the help of two things.
Which price action work in this pattern :-
Here, The main price action work which name is chart pattern and candle sticks pattern or box pattern and these all are simple price action if you have knowledge about this.
In this image the chart pattern form which name is double top pattern and after than consolidation start and this consolidation is called box pattern also.
After consolidation you can see a big red candle is form and break that neckline than big red candle is called candle sticks pattern and it is very important for every price action.
If you no more knowledge about these price action than don’t worry and start learning these price action because without price action you can’t stay more time in trading field.
These price action work in this pattern and these whole price action is very useful than try to learn it.
What is the learning of this post :-
There are lots of things which is the learning of this post.
The first learning is what is double top pattern in trading.
The second learning is how to find double top pattern in live market.
The third learning is how to trade using double top pattern.
The fourth learning is when you can sell using double top pattern.
The fifth learning is can we buy using double top pattern.
The sixth learning is how to find entry, target, stoploss point in live market.
The seventh learning is which price action work in this pattern.
These whole of the learning of this post and if you want to learning this point than you can take help this title and you can learn and continue learn.
