How to Know When A Double Top Will Fail

Summary

Many traders are familiar with the double top and the double bottom formation. However, the market doesn't always print a double top or double bottom every time it advances toward a significant level of support and resistance. It is sometimes difficult to know whether or not the market will reverse once it reaches a critical support and resistance level. In this session, we examine two specific "special case" versions of the double top and the double bottom formation. Not all double top and double bottom formations will fit these patterns, however. But this is precisely the point. By using naked trading principles you can restrict your entries to only those double top and double bottom formations that are likely to work out in your favor. You'll also learn when the market is hinting to you that it is going to break through the support or resistance level -- because there are usually a few clues that make this very clear. In the last half of the webinar we will take a look at the live markets and answer your questions, from a naked trading point of view.