Do you believe in the double top formation?

BITSTAMP:BTCUSD   Bitcoin / Dollar
While no trading pattern plays out every time, they do tell us what is more likely to happen. In this case, we have experienced a clear double top in BTC (around $13228).

How to trade a double top
A double top is a reversal pattern that occurs at the end of a strong move up - there are two peaks at approximately the same level (with the second notably not able to reach the high of the first), separated by a sharp dip in-between... which is the "neckline".

The drop down from the neckline (which is the ideal entry point when shorting) is approximately equal to the price difference between the neckline and double top itself.

In this case:
  • the neckline was $9614
  • the double top was $13228
    = difference of $3614
  • Neckline of $9614 minus difference of $3614 = Target of $6000

This target also lines up perfectly with the (current) daily 200 Moving Average... a powerful support line if ever there was one.

Here is the link for my free EMA/SMA indicator, offering key areas of potential strong support & resistance .

Also save crucial space on your Trading View chart by utilising my free RSI and StochRSI indicator which overlays both in a clear and helpful fashion.

Please give me a thumbs up and follow me if you found my analysis interesting. This is for educational purposes only and not a recommendation to buy or sell.
Great Gap target.
+1 Antworten
BCryptological Bullandbeartrading
@Bullandbeartrading, Cheers! I feel it's a little too bearish, but ultimately it's the target of a double top, so we'll see...
I love your technical analysis.
+2 Antworten
BCryptological drbagaruwa
@drbagaruwa, Much appreciated!
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