How to Trade Double Tops and Bottoms
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- Опубликовано: 17 янв 2018
- It looks so simple when you look at it for the first time. Two tops or two bottoms at the same price levels and that gives a clear signal. But it’s never that easy and that’s why we decided to make this tutorial.
Trading expert David Jones walks us through this, seemingly basic chart configuration, but shows us the wrong turns along the way. Patterns like this one aren’t hard to find but they are rare. And even when it does comply with the definition of what a double top or bottom is - it still can pan out in an unexpected way. Or take its sweet time in developing as per expectations.
These are the main things to keep in mind when entering and closing trades based on double tops and bottoms - patience and discipline. Patience for allowing the setup to form all of its components, followed by an entry that doesn’t jump the gun. Then comes the discipline to wait the right amount of time to make an exit.
We’ve got real market examples to show why these things are as important as simply identifying what looks like a sure-fire chart setup.
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The information contained within the video was correct at the time of recording but may have since changed.
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Why in the world will somebody dislike this. Some people are really disappointed with their life. This is a very frequently occurring pattern and it is explained nicely.
If just we could get a comment from one of these poor people telling why they disliked :-)
it could be because they don't want others to see this video , youtube uses likes and dislikes to rank videos
@@azadkaya They were looking for solutions to spot breakouts and yugioh card trading. Instead they got market breakouts and stock trading.
This video is the most easiest and cleanest explanation about double top and double bottom on RUclips i found. Thank you
Think i found my new channel, very simple explanations from the ones i have seen, which is great as i see a lot of channels over explaining it or going into to much depth, simple and clean is always best, thanks
super clear explanation. thank you !
Awesome video!! Really helpful and easy to understand. THUMBS UP!!
Great video, as always!
Awesome video and a concise way of explaining how double tops and bottoms work.
Great video! Excellent explanation. Please continue to do more pattern videos! Thank you!
perfect... no gossips.. clear and crisp...
Such a relaxed, concise and straight to the point way of explaining things you got sir, really clear. Thanks
Would like to add that some indicators pick up on the double top right from the top of the second resistance level which seems like an aggressive entry...rather that waiting for a break in the neckline...you logic in regards to the neckline is probably a safer way to go about it.
These videos are ridiculously clear.
very clear explanation. thank you
David, thanks for the great video - all the best
I notice that for myself, I like to set ~ 5% stop loss based on seeing the double top over he course of X time period. More often than not, it works as expected to and am able to minimize my losses as the stock dips, and then buy back in. I like to long stocks, but I have also learned to not potentially lose all my gains in hopes of the resistance finally being broken. Your videos have helped me a lot with my understanding of how I want to proceed with investing. Thank you for doing these videos.
Aye are you still using this? How is your trading?
Awesome video! Thanks!
You are so by far the best.
Thanks alot for the work 🙏
I have grasped candle sticks properly 😊😊
Done studying, thanks a lot teacher David
Thanks you for a very clear explanation
Very good explanation.
Perfect,I enjoyed this strategy
Love your videos as always. I was curious, are these patterns still good on an minute/hourly/daily time frame? I noticed in the video it was over the course of months.
Thank you
Thank you. Good job.
Thanks
Thanks a lot sir,it was a fantastic video 🔥
Nice, my one and only sure play
very well done. very well done
Thank you. Quite succinct:)
I watched one of your videos. Good idea that you do not have background music so I can ficus more on what you say.
I Loved this one
THANKS AM A FAN
keep it up david 👍
Way Up!
This seems like a strong and useful indication - double/tops and bottoms seem to almost always indicate trend in the opposite direction.
thanks!
I have a question. Could we trade false double tops/bottoms like false breakout? It worked pretty well in your second example at 5:20 when the level held.
well explained
Thanks For Sharing Trading 212^^
This Jones guy is pretty based. Wish he was in the newer videos.
What's the most prime time filter(1D, 4hr, 1hr, 30M) used in most of the indicators or even strategies used? Because I am always confused about which one to use, when it comes to patterns.
Thank you so much.
Have a nice day.
is it good to trail set stop losses at fibonacci retracement, price would unlikely reverse back to a fibonacci retracement position to stop out my trade am i correct
What are the time segments that double bottoms usually work. Like can I use this method on a weekly segment as well or does it only really work in longer term segments?
Can we adjust our stoploss level at the Fibonacci 0.618 when the double top formation break out the support level ? Thanks
Thanks.✔❤✔
Great Video. Does Trading212 work in Lebanon and UAE (These are the countries I move between currently but mostly UAE)?
Categorized and Clear, Thanks, I wish you could cover Indicators/Oscillators Divergence with Double Top and Bottom, Regards from IRAN
Woo patterns!
Hi David..
Pls share your views on pivot point stretegy w.r.t. to index trading
Hi there, great video! I really liked your simple explanation. I have a question-in the AT&T example you showed, you showed a double top, and that it did break through the support a few months later. However, as it channeled a bit between your lines, I see it almost forming a double bottom within there. This happens often, and I find it confusing, and I am not sure which way to trade. How would you approach this situation?
Hi Hari - if it is stuck in a range like it was for a while there is no reason why you can't trade the range if you want and if that is your style of trading. It's not mine as i prefer trends, but you would be buying at the support and selling at the resistance.
Hello David,
I really appreciate all of the videos; I think I have watched just about all of them, and I subscribed to your channel - thanks so much! Quick question for you or anyone viewing this: Can an M turn into a W? Let's say market is in uptrend, sinks, bounces back up, sinks again but maintains structure from previous sink. So we have our M now at the top of the trend, yet the neckline was not broken. Could we see that turn into a W, even though it is at the top of the trend?
Thanks.
Hi Cody - anything is possible! In the scenario describe, it would be all about that neckline as you mention it. If that broke I would start to be concerned the trend was i ntrouble. Hope this helps.
I've been using my practice account for a week now and I think I'm doing pretty well for now. I've learnt a lot from these analysis videos but would like to implement reading news stories and economic updates into my strategy I want to use these to my advantage yet I don't know how certain stories or economic figures are likely to affect a market could you do a few videos firstly on how to read new stories and interpret they're affect on markets and also how to implement them daily as part of your strategy. many thanks!
What time frame is best to use for double tops ?
Would you say the overall US indexes are in a double top situation?
Do wicks count on the second top because the candle is lower than the first top but there is wick over it?
chart example at 4:22 mostly resembles a m which is double top - also the first to complete the pattern before the bottom...So please tell me what I am missing here?
Is this analysis also correct with the 5min charts? I mean, if we got the same waves in a 5min chart, it also means the same thing or is less accurate? And thanks for your videos, you make this look really simple and clear.
Hi - yes, the approach would be the same, but as usual the longer-term time frames are thought to be more reliable. No reason why you couldn't use them on shorter-term time frames.
fantastic Video, nicely explained & very helpful. One suggestions, please include/discuss time frame with patterns !!!
Video about time frames coming in the next couple of months.
Thanks for the reply, eagerly waiting for it (Y)
Can I apply these pattern fr Indian share market
Please tell where to take the position if it breaks..
Because sometimes the wick just appears and it's a fake breakout sometimes
Hi David, @6:23 4 tops; a triple top lower high 1st, but also comprised of double top at higher high. What to read that with educated guesses? I mean that is a long time frame.
Hi, good points and you are right it gets a bit complicated. For me though it is all about that support level around 40 breaking, so not too bothered whether it is a double/triple or quadruple top! Hope this helps.
David Jones ah, okay. Thx! Please keep at it. I love all of your vids! 👍
Why i entry nickline! If i enterty second touch,its good.?
Which time frame to use this ???
would this work on like 1hour - 4 hour time frame?
thank you . this is very difficult to apply in crypto market :)
Necula Cristian that goes for everything. Nothing applies to crypto, especially logic!
Can you trade these in hour candles?
yes
Can you run through at some stage what you can read from the buyer and seller percentages ... I see Gold now has more sellers than buyers !!! Keep up the great videos
Yeah, that's a good idea for a video. Added to the list.
Regardless of how you structure it, Tops and bottom minimum R-multiple will occasionally be the deciding factor of whether you need to wait for a retest or not. The illustration shows this idea in more detail like Lukasz Wilhelm's laws on stock market trading Ebook. The illustration shows a comparison of two markets that have recently broken key resistance but exhibit vastly different day-to-day movement.
I have $4 in my account mt5..and believe this strategy should be the best,, will see when trade
Looks like a double bottom on vbiv late yesterday.
What platform is this
Hi Kevin, this is Trading 212's trading app. Check it out with virtual money at www.trading212.com/en/Free-FOREX-Practice-Account-GBP.
6:20 before this double top forming, I see a double bottom too, that just formed, which implies an uptrend.... psyche :@
Man, this thing is so arbitrary..
up
David...*swoons*
Yes... Stocks trading is about up and down.. You don't sell when your stocks are going up in a bearish market, your chances of losing when you decide to cut loss. All profits. small or big are better than seeing yourself sell at a loss when the the stocks start to pull back.. Win or lose is whether you have taken profits or have to cut lose with a winning stock which you hold too long in a bearish market..
The crypto market is looking like this chart right about now
Why don't you show current formed double tops/downs? I would be much more interesting. I could find any pattern you can imagine in history and say that you can profit from it :)
Have you thought of maybe doing a live stream of you trading with real money?
This is just breakouts remix
I wonder what's in his locker
I thought he said his name is Davy jones from pirates of the Caribbean😂😂😂
Shame t212 is so limited in instruments. Everything was good apart from that.
What instruments would you like to trade?
Is there anyone here who actually uses the platform with real money. I've been practising for a while now, and want to start trading with real money, but have been deterred by many negative reviews on Google. Can anyone say what experiences they have with using real money on Trading 212. Thanks.
Faheem Mirza well I have started last week with 100e over doubled my money in 5 days so not to bad to start ;)
Using real money in trading 212 has worked perfect for me 👍
@Faheem:
TL;DR: I don't care about negative user reviews at this point, at least not on review-gathering sites.
I saw negative reviews with accusations about T212. I saw positive ones. I'm on the platform, traded demo and live, won live (high percentage gain one day using zero spread forex, too bad they phased them out), lost (a lot) live. But I don't blame the broker. They're not stellar, but there's nothing *wrong* with them, as far as I can tell.
I saw negative reviews about ForexTime - many, *massively* more than about T212. (Then again, they are a lot older than T212.) Saw positive reviews - but Googling revealed they were template texts used for other brokers, too. (Didn't check this for T212.) I'm also on ForexTime now. Nothing wrong with them, as far as I can tell.
@stefan: Congratulations on this win! I hope you're aware that this was very exceptional and scale back on your position sizes now. Probably the case: You have an edge on the market to pick winning trades - but this of course comes with a probability. You flipped that coin, got heads, and made bank. But your probability will have tails. Trade often and small instead of few times and big. Consider this (and look at the coin toss tables i.imgur.com/C0XZyYI.png).
Brits do it best. No hype, no glamour just substance
You could had show the stop loss at same time.. perhaps quickly, but... thanks
Let the market crash. The great reset is and has started
Thank you
Thank you
Thank you