double top-take profit

• 08/18/2023 at 2:58 PM #219308
  gnellas77

  Hi there,

  Usually i short the double top formation but i dont know where to place the “take profit”. Sometimes i gain 1.5% and sometimes the stock falls of 7% for example.

  How should i know if my stock has potential for further drop? Any ideas?

  thanx!

  

  gnellas77

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  08/18/2023 at 3:50 PM #219317
  robertogozzi

  I’d suggest one of these methods:

  1. fixed TP (which seems to be the one you are currently using)
  2. multiplier of the SL
  3. amplitude of the gap between the TOP price  and the lowest price where the spike started from, multiplied by a fixed factor of your choice
  4. amplitude of the gap between the TOP price  and the lowest price where the spike started from, multiplied by a Fibonacci extension, possibly the greater the gap the further the extension.

   

   

   

   

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  coincatcha

  

  robertogozzi

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  08/28/2023 at 10:39 AM #219935
  coincatcha

  I’m liking number 4 on this list Roberto. I will also look into this if I can work out the code as never tried fibs in auto but used them a lot manually. It’s amazing how many times breakout moves retrace 50% exactly.

  As an additional suggestion I am having early success with ‘IF in profit ignore timestop’ then start applying alternate management such as pointsback trailing stop to juice a bit more. This method is particularly useful for after hours run-ons.

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  coincatcha

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