Double Top identifies two peaks separated by a number of bars with similar prices. After the second peak forms, a bearish candle confirms the reversal.
The strategy sells short upon confirmation with a stop above the pattern highs, aiming to profit from a trend change after buyers are exhausted.
Positions are closed via stop-loss or discretionary targets.
- Entry Criteria: Two tops within SimilarityPercent after Distance bars.
- Long/Short: Short only.
- Exit Criteria: Price rallies or stop-loss.
- Stops: Yes.
- Default Values:
- Distance = 5
- SimilarityPercent = 2.0m
- CandleType = TimeSpan.FromMinutes(15)
- StopLossPercent = 1.0m
- Filters:
- Category: Pattern
- Direction: Short
- Indicators: Price Action
- Stops: Yes
- Complexity: Intermediate
- Timeframe: Intraday
- Seasonality: No
- Neural Networks: No
- Divergence: Yes
- Risk Level: Medium