Education

“Some people rush for the fire hoses, but my job requires me to grab some marshmallows and sticks and head over to the boy scout jamboree campfire.”

– Barry l. ritholtz

Chart Patterns

Double Top

A double-top pattern occurs after an uptrend phase. The market makes a high price, retreats lower, rebounds to that previous high (or close), then sells off. Once the validation level (neckline) is broken, the sell-off intensifies. The minimum target is found by using this formula;

Target Price = Neckline – (Top – Neckline)