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