Proficient in mastering the probability of profitability99%ofKLinear form

Proficient in mastering the probability of profitability99%ofKLinear form

The double top, also known as the double top, isforeign exchangeAn important head and shoulder shape in the market,Usually indicates a reversal of trend and a decrease in prices.

The characteristic is in an upward trend,The price forms two similar high points,Then it falls. As shown in the figure1-1

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A typical double top typically has the following characteristics:

1. In the current upward trend,The price has reached a high point1There is a decline afterwards,Forming high points in similar price ranges2,Unable to break through high points1。

2. After two highs, there may be a rebound and a pullback,But it did not exceed two high prices.

3. When the price falls below the lowest point between two high points,Complete the formation of a double top. This usually indicatesThe price trend is about to reverse。

4.The deeper the callback between two high points,The stronger the signal at the double top.

5.The distance between two high points should not be too large,Generally formed within one time cycle.

6.The trading volume usually amplifies and begins to weaken at two high points,Suggest the possibility of a trend reversal.

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As shown in the figure1-2

In real trading, aggressive traders will be at high points2Next up with a small number of empty orders, thenAPoint to increase position, when the market reachesBWhen clicking, you can considerPartial closing of positions to ensure profitability of the foundationOnCPoint timeWhen a reversal pattern occurs, all positions can be closed out

in short,Double tops indicate that the strength of the bulls has gradually weakened,Indicating that the current upward trend is coming to an end,Traders need to be vigilant,Waiting for an opportunity for price reversal. Interested friends!

                                                                                

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