early double top formation

• 09/04/2021 at 2:11 PM #176784
  gnellas77

  hi there,

  i want to ask how someone can enter an early short position on a double top when double top seems completing its 2nd peak but has not broken the neckline (i mean that the fourth and final line on letter M has not been formed at all). Are there any indicators ot other things that i must take into consideration that can predict the downwards move of the 4th line? i lose many trades because the pattern M is not completed and instead of making a double top the stock continues to move upwards on the second peak.

  thank you.

   

  

  gnellas77

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  09/04/2021 at 3:08 PM #176790
  GraHal

  gnellas77 wrote:

  fourth and final line on letter M has not been formed at all

  Above is still in possible breakout (UP) territory. Nowhere near a double top has been formed on above scenario.

  If you are > 70% of the 4th line formed then maybe,  > 90% more confident, but until the 100% has been broken and then even a retrace formed and failed and a lower low formed after the full M … then you may be onto a decent short run??

  The lower low does not necessarily need to be on same TF as the double top.

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  gnellas77

  

  GraHal

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  09/05/2021 at 11:02 PM #176843
  Eric

  Sometimes you get divergence in RSI as a early warning

   

   

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  gnellas77

  

  Eric

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  09/06/2021 at 10:02 AM #176848
  GraHal

  Yeah try anythng (I do! 🙂 ) but if you get higher highs and higher lows on 1 min TF and deffo on 5 min TF then exit (on the next HL) to live another day / try another time.

  There’s no shame in small losses, but still plenty £££’s capital left for another try.

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  GraHal

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