Double Top Reversal Patterns

Reversal patterns are best seen on candlestick charts which is a reason why so many day trader or traders in general prefer to look at a candlestick chart of some kind.

 

Major Reversal Patterns

Double Tops - Less relevent than triple tops but still a major reversal pattern in day trading and other forms of trading. If a point is reached once and a stock returns back a level has been identified in which sellers were no longer present. This is an indication of uncertainty at this level.

 

double top reversal pattern in day trading




Major Reversal Patterns



Trading Psychology Upward Trend

1. Never go Long if the stock is at the high of the day unless you are sure it is going to continue to rise. Wait for a pull back and then jump in. This is a safer way of trading as a stock that is rising on a positive day is likely to continue to rise especially after a pullback. These are the type of plays you want.

 

2. Never go Long on the low of the day especially on a negative day.

 











Map - Links