8. How to Trade Double Tops Like a Pro

http://www.informedtrades.com/
The 2nd lesson in a series on charting patterns for traders and investors in which goes into specific strategies which can be used to trade double tops and double bottoms in the forex market, stock market, and futures market.

Category:

Education

Tags:

• how
• to
• daytrade
• investing
• forex
• market
• finance
• business
• stock
• futures
• technical
• analysis
• informedtrades

[abdullahmunir]

Hi Dave,

Great Video and great job you did. I have question for you. What do you think of investools as market navigator for beginners?

[InformedTrades]

Hi abdullahmunir, Thanks for the compliment and for watching I am glad you like the videos. I have not taken any of the investools courses but from what I hear they have a decent reputation in the market. Best Regards, Dave

[spacebass5000]

As a new trader, I was hoping that you could verify my assumption about this video. Hopefully this will help other noobs like myself.

A trader would look to short a double-top and go long the double-bottom, right?

[dape7117]

@blackopsNARRATOR I also don't get the level of the stop loss. Why place the stop loss at the peak when you can place it slightly above the support?

[G00n3r4Life]

@Doodsome I am by no means a pro and have a similar question of my own. But as you see the price does go past the entry point again before it reaches point target. You dont want to have a stop loss at the entry point for just that reason, you can be edged out the market before the price has a chance to meet your point target.

[webringituk]

Hey guys, could Dave or a watcher explain how you get the target point number (what do you subtract) and what this is used for going through the break ? Also, on a more lt time scale, how can you see the difference between double top and double bottom ? Is it if demand/supply for that stock dramatically increases/decreases against the general trend ?

[onkar2510]

okadvisors.blogspot. try this for real results!!!!!!!!!!!!

[Doodsome]

II don't get it, Dave. Why don't we put stoploss just above the breakpoint with doubletops since we think the price should go down? Isn't it safer that way?

[Doodsome]

I don't get it, Dave. Howcome is that you want to put a stoploss above second top just above the resistance level when the entry is at break point? wouldnt it be somewhat safer to put stoploss just above the breakpoint or atleast on the halfway through the way to last resistance? Since we are hoping the price falls that is ofcourse... what's you though process for that? Thanks alot for your lessons!

[Blackremains1]

@blackopsNARRATOR He SOLD the share at the break of support level . Therefore stop loss is calculated at the peak in case if it goes north ..Hope that helps CHEERS

[saweaq1]

Great video thank you for explaining it so well

[saweaq1]

Great video

[propriodaroma]

@blackopsNARRATOR

I am also confused on this.