Mastering the Double Top: A Trader’s Warning Sign!
The Double Top is a powerful reversal pattern that signals trouble ahead for bullish traders. Here’s how to spot it before the drop:
1. Twin Peaks of Trouble – Price tests resistance twice but fails, signaling exhaustion.
2. The Neckline of Fate – A crucial support level forms between the two peaks, acting as the market’s last stand.
3. Fading Firepower – The second peak comes with lower volume, revealing buyer weakness.
4. The Final Breakdown – When price crashes through the neckline with volume, the pattern is confirmed.
5. The Fall Begins – The projected drop usually mirrors the pattern’s height, making for a dramatic downturn.
Stay ahead of the game—know the signs before the market turns!
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