How to spot the difference betwwen a double tob and bullish rectangle

Beginner Questions Candlesticks, Chart Patterns, and Price Action
1

How to spot the difference between a double tob and bullish rectangle:

A double top will read to a reversal , suppose a uptrend is going on and we see a double top , it indicates that there will be reversal from the neckline , However when a bullish rectangle is formed it will lead to a continuation of the trend, So to me both looks similar, However both are giving opposite signals .

I would appreciate if someone could shed some light on this.

Thanks in advance
IMR

2

you can only after the formation is completed. double top when the price surpasses the low point of the last low swing.

rectangle when price surpasses the last swing high high point.

basicly: theres no way to identify them before they finished the formation. only in hindsight.

3 Likes
3

Thanks for the reply , Man . I was literally scratching my head on this ; )

You are a star : ) Cheers.

1 Like
4

That is a great explanation, thank you.
Unfortunately, a lot of patterns are that way, recognizable only after they’ve finished or almost finished forming, sometimes when it’s too late to react.

1 Like
5

We should be ready with the the expected stops and entry, as soon as we see a formation taking place, Have to practice that. ; )

1 Like