Study Notes: Double Tops
These are study notes for the free Babypips course.
Based on this article: babypips.com/learn/forex/double-top-and-double-bottom
Chart we're using is the infamous Bitcoin double top of late 2017.
Notes:
- Neckline is the resting place between the first top, and the second, failed 'run up'
- When the 2nd run up fails, that indicates that buyers are exhausted
- Notice the indecision doji, near the neckline and right before the drop!
- Distance between neckline and top = good basis for the size of the first big drop, to calculate your short
Based on this article: babypips.com/learn/forex/double-top-and-double-bottom
Chart we're using is the infamous Bitcoin double top of late 2017.
Notes:
- Neckline is the resting place between the first top, and the second, failed 'run up'
- When the 2nd run up fails, that indicates that buyers are exhausted
- Notice the indecision doji, near the neckline and right before the drop!
- Distance between neckline and top = good basis for the size of the first big drop, to calculate your short
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