I have decided to do more video content and here is the first of many Forex Trading Education Videos.
The double tops is a bearish trend reversal pattern that often marks the end of an uptrend and the start of a downtrend. It consists of two consecutive peaks that reach a resistance level at more or less the same high value, with a valley separating the two peaks. The low of the valley is important for price projection purposes, but the shape that the peaks take is not important despite some traders talking about Adam and Eve tops. Volume is also of importance, with the volume on the second peak preferably lower than the volume on the first peak.
At times, the double top pattern can form a third top, creating a triple top pattern.
Scan the charts and see how many times you can spot a double/triple top or bottom and then take a further look at the price action around the whole movement. The more you backtest this the easier you will pick them up on the future.
