Double tops formations are one of the price patterns that are taught in the Guide to Trading Today’s Markets Successfully in 90 Days video course. They are often used to short a market at the top or for entry into an existing downtrend.
Double Tops Formation into Existing Downtrend
In this video, Gail Mercer, founder of TradersHelpDesk, reviews the double tops formation that occurred on the GBPUSD this morning. The double tops formation can be used to enter into an existing downtrend. In this example, each double top formation occurred right at the ATR and provided further confirmation that price would more than likely move down.
The double tops formation is an easy to identify price pattern formation and by incorporating a multiple time frame approach, traders can utilize the pattern to confirm the pattern will hold. Plus, whenever you find the pattern at key levels (like Fibonacci levels or ATRs), then it simply confirms that price has found resistance and will likely move down.