Hello Experts, I’m a new trader and most of the time I found a double top/bottom and I know that opens a position for market sentiment but what time frame is best to find out Double top/bottom? 15M or 1/4HR? Please help me to understand and which one is most profitable double top or triple? Thank you.
You can find chart patterns on any time frame, since the markets are fractal. For double top and bottom, as well, you can find them on the 15 min timeframe or the hourly timeframes.
There is no general answer as to which one is more profitable. It depends on your stop loss size, your take profit, how the market behaves and how far it goes… You probably have to do your own research through backtesting to find your answer for that.
Besides the previous great answer, I will add that DTs and DBs are seldom perfect.
For example, you’ve probably been told to look for the second spike of a DT to be slightly lower than the first. But that doesn’t always happen. And it doesn’t necessarily make the DT invalid.
Also, look for triple DT or DB which is an even better reversal signal, in some instances.
The higher the timeframe the better but it is key to trade according to your strategy. If you trade 15min you can use it there. Just have your rules and follow them
Thank you for your detailed reply. I’ll keep that in mind
Thank you Mate
Thank you very much Mate
I think we’ve all been sold unhealthy beliefs about chart patterns and candlestick patterns.
The classic trader conclusion is -
“This is a double top, so that means the market is going to go down”.
The actual truth is -
“This is a double top, so that means the market is probably not going to go up”.
Patterns might be seen as better exit signals from an existing position than really good entry signals.
Percentage probability is around 40%. Mainly because market sentiment is mostly inertia.
I like this. Especially since I’ve always seen double tops as how it’s been believed to behave.