How to Know When A Double Top Will Fail
|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.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.