I was practicing short term range & breakout trading, when stumbled upon a double top pattern that I almost didn’t notice because of the time frame I was looking at. I thought I would post some pix of the double tops in case some newbies might find it useful for the following 2 reasons:
A) See an example of a text book double top, exactly as described in Baby Pips awesome School of awesomeness
B) See an example of how looking at multiple time frames can help identify such patterns, not to mention single candles sticks formations and S&R levels.
The screen shots below I took live while in the middle of the trade, so the current price keeps moving in each pic.
Yellow box = double top
Little arrow = my short entry
Green line = TP
Red = SL
You might notice I moved the SL and TP around as I was taking the screen shots. And yup, the SL is indeed below the entry point, as I moved there after the price shot down.
I was on the 5M time frame, and it the double top looked pretty messy. I went short just after price broke down past the support/neckline.
5 minute. Double top looks more like a head and shoulders with an extra mutant baby head growing of the collar bone. I barely recognized it. Had to look at larger time frames to get a better look.
You can see my short entry just past the neckline.
Originally I had TP set 20 pips below the neckline, as the double top was the same size. That’s also just above where the current price is in the pic. That is also previous resistance of a mini range from off the left side of the chart. Before I took the pic, it looked like there was a lot of downward momentum, and the price would just blow past that level, so I moved TP down to previous support instead.
10 minute. The extra mutant baby head is gone, now it looks like a double top.
15 minute. Still looks like a double top.
Price still going down.
30 minute. Still looks like a double top, but not too clearly.
Price almost at TP level.
1 hour. Can’t see the double top, unless you notice the top shadows of the candles are the 2 tops. Really hard to see. Better to look at smaller time frames for this one.