[B]Student’s Question:[/B]
Double Top…Yes?
[B]Power Course Instructor’s Response:[/B]
I can see how you came to your conclusion…
However, while we do have two candles at the same level on the chart, the two candles are right next to each other so that would not constitute a double top.
For a true double top/bottom, we would want to see price action top/bottom out, pullback for a period of time (several to many candles) and then test the former level again.
See the example below…
Also, on the chart below, note how the price action when forming the Double Top forms the capital letter “M”. If it were forming a Double Bottom, it would be in the shape of a capital “W”.