Double Top Pattern (Python)

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