Stock Market Double Top Trading Chart Pattern - YouTube

welcome to this week's video this is dr. Barry Burns with Top Dog Trading and today

we're talking about stock market double top trading chart patterns and we'll

also look at double bottoms

so here is the way that people get this wrong. I'm going to show you how the

professionals do this as opposed to amateurs and the devil's in the details

like a lot of things when it comes to the stock market trading these double

bottom and double top the chart patterns are very very detailed and very

important

so the problem that i find some people having is they'll look at you something

like this

I'll see this high and they'll see that high and they'll say that's a double top

okay that is not technically a double top that is just I would just call them

even highs and the reason is the first thing you need to get a stock market

double top trading chart pattern is you've got to have a trend and the

indication of that is the word top

we're looking for the top we're looking for the end of a trend that's really the

point of this pattern

so this is not a trend that is just a half cycle move a trend is a long-term

move

so let's scroll forward here and let's find a real trend and there we go so

great

okay here we go so now we have a trend now the average trend last five waves

so as you can see here we've got one

two three four and five

that's your average trend that's the sweet spot for a trend to end now i'm

not talking about Elliot waves here if you want to learn how I account waves be

happy to show you that another time it's actually pretty darn simple but it's

much more objective than elliott wave so the wave accounts don't change they they

stay but you can get more than five waves the way that I count them so that

the average mathematically is five so we're not even going to look for a

double top until we get five waves so for example I mean even here we see

we've got what some people would see as a potential double top there again those

are just even equal highs

that is not where the trend ends so the trend started way down here and then we

go up here so this is it now

now what we're looking for is a retest of this high school rule number one when

it comes to double tops is we're not even looking for them until we put in at

least five waves and again you can pretty much see it basically what i'm

talking about ways i'm just talking about higher highs and higher lows but

there is a candlestick rule that applies as well which is why that is a failed

three and that's a real three

so it's a little candlestick pattern rule that we applied to it

it can't just be barely another player hi there has to be a real body above the

previous high that closes above it

so that makes it more we committed move now

once we put in 15 that is the only time we can now start looking for a double

top again

double top meaning the end of a trend so you've got to have a trend started

so here we go and this is where we come back down and then we retest this high

all right now again that's still not enough that's the price pattern

they're retesting that high now we have the price pattern in place but the

question is is that going to actually work will the trend end there and the

market then go down and there would be two reasons you want to know that number

one if you were long take profits lock in your profits at that point number two

if you wanted to take a reversal and actually short that then that would be

an opportunity for you as well it could do it either way

so just remember the famous saying we all know the trend is your friend until

the end and part of what that means is that the early in the trend

it's not likely to end but the trend is your friend until the end means that the

longer that trend goes on the less likely it is to continue because it's

not your friend anymore

so therefore what else we look for all right not just the wave count that's

number one how far has this trend been going how extended is it

that's number one then we look for a cycle hi by the way if you want my cycle

indicator be happy to share that with you just send me an email at . top dog

training . com and i'll show you how to get this indicator absolutely free and

my tutorial on how to use it because it's very hard to read unless you know

how

how to use it then I make it really easy for you how to really read it but

there's false signals and there's good signals and I have to share with you

that the difference

and then the final thing we look for is a momentum shift in momentum shift and

that's what we see here that's this black line when this line goes from

magenta to black

that means that now momentum is gone from bullish too bearish

so you'll see here for example that momentum was still in it goes between

black and magenta

but we're looking forward to stay solid when it does go a little black here at

that high then the market does end up putting in a little bit of a lower level

right business

these are just short-term signals that's actually a long signal there that but

we're looking for is the confluence of all this stuff you can't trade any one

of these indicators the indicators only do what they promise which what indicate

right

they just indicate peito tell you anything that will make you money if

indicators made you money we call money makers

so there one piece of evidence of one of the energies in the market and you put

together the pieces of evidence in a methodology that makes you money

so the pieces of information we're putting the other here is extended trend

we would reap

we test that high at a cycle high with lower momentum when you put all three of

those together and then we have the double top treating chart pattern on the

stock market

you put all that together then we have a probability scenario so that's what to

look for

all right maybe i'll do another video showing you double bottoms - we run out

of time here so if you like this video and you're watching it on YouTube please

click the thumbs up icon below and leave a comment because that encourages me to

give you more free tutorials here on YouTube

also i'm giving away one of my favorite treats strategies called the rubber band

trade which has an extremely high win loss ratio is very simple strategy you

can learn in about twenty six short minutes so i'll give you that video

explaining the trade strategy absolutely free

when you simply click on the image in the top left corner or if you're on a

mobile device click on the little I with a circle around and operate hand corner

of this video and if you're not watching the video on youtube there's probably a

link or enough to inform somewhere on the web page and i will personally email

this video to you along with some videos that explain more about other patterns

head and shoulders

double tops or bottoms triangles and again how you put these things together

as a professional does

yeah