Jump to content

Welcome to the new Traders Laboratory! Please bear with us as we finish the migration over the next few days. If you find any issues, want to leave feedback, get in touch with us, or offer suggestions please post to the Support forum here.

  • Welcome Guests

    Welcome. You are currently viewing the forum as a guest which does not give you access to all the great features at Traders Laboratory such as interacting with members, access to all forums, downloading attachments, and eligibility to win free giveaways. Registration is fast, simple and absolutely free. Create a FREE Traders Laboratory account here.

Jugador

Fading Dbl Tops and Dbl Bottoms

Recommended Posts

I think you'll find that double bottoms/tops (and triple bottoms/tops for that matter) work great on some days and will get slaughtered on other days.

 

Risk management will be key to make it work and IMO you'll want/need some other confirmation - candle patterns, indicators, confluence of S/R, etc.

Share this post


Link to post
Share on other sites

Risk management will be key to make it work and IMO you'll want/need some other confirmation - candle patterns, indicators, confluence of S/R, etc.

 

When you say confluence, you mean like a bollinger or keltner being touched?

Share this post


Link to post
Share on other sites
I think you'll find that double bottoms/tops (and triple bottoms/tops for that matter) work great on some days and will get slaughtered on other days.

 

Risk management will be key to make it work and IMO you'll want/need some other confirmation - candle patterns, indicators, confluence of S/R, etc.

 

Especially since most people know about these things. Anyone watching a chart is going to see it. Really you have to ask "what are traders going to do with this double top/bottom?" Much of the time, these double tops and bottoms are also pushed even further, just enough to shake/stop out someone with a good position. Look for any trouble that price has when trying to move any further above or below the double top or bottom. And of course, be ready if case you're wrong.

Share this post


Link to post
Share on other sites
When you say confluence, you mean like a bollinger or keltner being touched?

 

There's so much you could look for... a few ideas:

 

Touch BB or Keltner

Market Profile areas

Other S/R areas (globex high/low, previous days high/low, etc.)

Candlestick patterns

VSA stuff

Plethora of oscillators - macd, stochastics, etc.

You get the idea.

 

Basically, just seeing a DB or DT by itself can be a risky setup.

 

Equally important is entry method, where to place stop and where to exit for profits.

 

As you can see, quite a bit needs to go into it.

Share this post


Link to post
Share on other sites
There's so much you could look for... a few ideas:

 

Touch BB or Keltner

Market Profile areas

Other S/R areas (globex high/low, previous days high/low, etc.)

Candlestick patterns

VSA stuff

Plethora of oscillators - macd, stochastics, etc.

You get the idea.

 

Basically, just seeing a DB or DT by itself can be a risky setup.

 

Equally important is entry method, where to place stop and where to exit for profits.

 

As you can see, quite a bit needs to go into it.

 

Okay, thanks...that should keep me busy for awhile. :)

Share this post


Link to post
Share on other sites
Anybody trade this strategy? If so, what kind of entry do you use? Anticipate or confirmation, or maybe something else?

 

In my opinion, the best way to trade any kind of support/resistance (i.e. tops/bottoms) is to watch the sell market orders vs. buy market orders (also known as "delta") at that point in time at the support/resistance. It makes no sense shorting a top when you see a lot of buy market orders. As someone pointed out earlier, in this case they might take the market a bit higher until everyone who shorted at the resistance pukes and then it will go back down again, but you will see this when you see the sell market orders hitting the market.

Share this post


Link to post
Share on other sites
I have to admit, I haven't really spent that much time researching the significance of volume. I'm gonna have to put that on my "to do" list. Thanks

 

With all due respect, that's bit like saying you will get around to figuring out how to put gas in your car when you run out.

Share this post


Link to post
Share on other sites
With all due respect, that's bit like saying you will get around to figuring out how to put gas in your car when you run out.

 

That's only if you place significance on volume. I don't have it on my charts in any capacity and don't need it.

 

So while important to some, others may find it useless.

 

;)

Share this post


Link to post
Share on other sites

In the Wyckoff and VSA methods, Upthrusts for a double top and Springs for a double bottom are often excellent indications of directional movement. Volume certainly plays a part. When you see less volume on the retest of the top or bottom, it is high odds for a reversal. Even given that, you still want to see a key reversal bar, either closing on the low after attempting to go higher for an UpThrust, or closing on the high after attempting to go lower for a Spring. In both cases, prices above or below resistance and support are rejected by the market and indicate a directional move.

 

Here are a couple of examples:

 

In the first chart, you can see the market fell. Note that the last rally indicated some strength because it pushed above the Supply Line AA at 1. The market then drops below support and makes a 'double bottom,' but a Spring occurs at 2 with the Key Reversal bar. The market rallies at 2 back above support. Because volume is low at this point, it is a relatively 'safe' entry to the long side. The market then rallies 10+ points.

 

In the second chart, you can see an UpThrust. Here, you see an old top in the background. This is resistance. The market tried to push through this old resistence and on the third time, it fails miserably. At 1, it tries to go up, but reverses and closes on the low (second bar). This is a clear indication of lower prices, no doubt. The market then procedes to fall over 30 points in a short period of time.

 

UpThrusts and Springs occur freqently and can be high odds trades in the right circumstances. We talk a lot about these and other high probability setups on the VSA thread - VSA stands for Volume Spread Analysis, a useful, modern, and intuitive version of the Wyckoff Method. Check it out here: http://www.traderslaboratory.com/forums/f151/

 

Hope this is helpful,

 

Eiger

5aa70ec250211_Spring4-09.thumb.png.21050434bf958de47dca9ef17042bb90.png

5aa70ec2565ab_UT4-09.thumb.png.a86ce06878a29d8df796a07008c6d969.png

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


  • Topics

  • Posts

    • Date: 11th July 2025.   Demand For Gold Rises As Trump Announces Tariffs!   Gold prices rose significantly throughout the week as investors took advantage of the 2.50% lower entry level. Investors also return to the safe-haven asset as the US trade policy continues to escalate. As a result, investors are taking a more dovish tone. The ‘risk-off’ appetite is also something which can be seen within the stock market. The NASDAQ on Thursday took a 0.90% dive within only 30 minutes.   Trade Tensions Escalate President Trump has been teasing with new tariffs throughout the week. However, the tariffs were confirmed on Thursday. A 35% tariff on Canadian imports starting August 1st, along with 50% tariffs on copper and goods from Brazil. Some experts are advising that Brazil has been specifically targeted due to its association with the BRICS.   However, the President has not directly associated the tariffs with BRICS yet. According to President Trump, Brazil is targeting US technology companies and carrying out a ‘witch hunt’against former Brazilian President Jair Bolsonaro, a close ally who is currently facing prosecution for allegedly attempting to overturn the 2022 Brazilian election.   Although Brazil is one of the largest and fastest-growing economies in the Americas, it is not the main concern for investors. Investors are more concerned about Tariffs on Canada. The White House said it will impose a 35% tariff on Canadian imports, effective August 1st, raised from the earlier 25% rate. This covers most goods, with exceptions under USMCA and exemptions for Canadian companies producing within the US.   It is also vital for investors to note that Canada is among the US;’s top 3 trading partners. The increase was justified by Trump citing issues like the trade deficit, Canada’s handling of fentanyl trafficking, and perceived unfair trade practices.   The President is also threatening new measures against the EU. These moves caused US and European stock futures to fall nearly 1%, while the Dollar rose and commodity prices saw small gains. However, the main benefactor was Silver and Gold, which are the two best-performing metals of the day.   How Will The Fed Impact Gold? The FOMC indicated that the number of members warming up to the idea of interest rate cuts is increasing. If the Fed takes a dovish tone, the price of Gold may further rise. In the meantime, the President pushing for a 3% rate cut sparked talk of a more dovish Fed nominee next year and raised worries about future inflation.   Meanwhile, jobless claims dropped for the fourth straight week, coming in better than expected and supporting the view that the labour market remains strong after last week’s solid payroll report. Markets still expect two rate cuts this year, but rate futures show most investors see no change at the next Fed meeting. Gold is expected to finish the week mostly flat.       Gold 15-Minute Chart     If the price of Gold increases above $3,337.50, buy signals are likely to materialise again. However, the price is currently retracing, meaning traders are likely to wait for regained momentum before entering further buy trades. According to HSBC, they expect an average price of $3,215 in 2025 (up from $3,015) and $3,125 in 2026, with projections showing a volatile range between $3,100 and $3,600   Key Takeaway Points: Gold Rises on Safe-Haven Demand. Gold gained as investors reacted to rising trade tensions and market volatility. Canada Tariffs Spark Concern. A 35% tariff on Canadian imports drew attention due to Canada’s key trade role. Fed Dovish Shift Supports Gold. Growing expectations of rate cuts and Trump’s push for a 3% cut boosted the gold outlook. Gold Eyes Breakout Above $3,337.5. Price is consolidating; a move above $3,337.50 could trigger new buy signals. Always trade with strict risk management. Your capital is the single most important aspect of your trading business.   Please note that times displayed based on local time zone and are from time of writing this report.   Click HERE to access the full HFM Economic calendar.   Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding of how markets work. Click HERE to register for FREE!   Click HERE to READ more Market news.   Michalis Efthymiou HFMarkets   Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in Leveraged Products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
    • Back in the early 2000s, Netflix mailed DVDs to subscribers.   It wasn’t sexy—but it was smart. No late fees. No driving to Blockbuster.   People subscribed because they were lazy. Investors bought the stock because they realized everyone else is lazy too.   Those who saw the future in that red envelope? They could’ve caught a 10,000%+ move.   Another story…   Back in the mid-2000s, Amazon launched Prime.   It wasn’t flashy—but it was fast.   Free two-day shipping. No minimums. No hassle.   People subscribed because they were impatient. Investors bought the stock because they realized everyone hates waiting.   Those who saw the future in that speedy little yellow button? They could’ve caught another 10,000%+ move.   Finally…   Back in 2011, Bitcoin was trading under $10.   It wasn’t regulated—but it worked.   No bank. No middleman. Just wallet to wallet.   People used it to send money. Investors bought it because they saw the potential.   Those who saw something glimmering in that strange orange coin? They could’ve caught a 100,000%+ move.   The people who made those calls weren’t fortune tellers. They just noticed something simple before others did.   A better way. A quiet shift. A small edge. An asymmetric bet.   The red envelope fixed late fees. The yellow button fixed waiting. The orange coin gave billions a choice.   Of course, these types of gains are rare. And they happen only once in a blue moon. That’s exactly why it’s important to notice when the conditions start to look familiar.   Not after the move. Not once it's on CNBC. But in the quiet build-up— before the surface breaks.   Enter the Blue Button Please read more here: https://altucherconfidential.com/posts/netflix-amazon-bitcoin-blue  Profits from free accurate cryptos signals: https://www.predictmag.com/ 
    • What These Attacks Look Like There are several ways you could get hacked. And the threats compound by the day.   Here’s a quick rundown:   Phishing: Fake emails from your “bank.” Click the link, give your password—game over.   Ransomware: Malware that locks your files and demands crypto. Pay up, or it’s gone.   DDoS: Overwhelm a website with traffic until it crashes. Like 10,000 bots blocking the door. Often used by nations.   Man-in-the-Middle: Hackers intercept your messages on public WiFi and read or change them.   Social Engineering: Hackers pose as IT or drop infected USB drives labeled “Payroll.”   You don’t need to be “important” to be a target.   You just need to be online.   What You Can Do (Without Buying a Bunker) You don’t have to be tech-savvy.   You just need to stop being low-hanging fruit.   Here’s how:   Use a YubiKey (physical passkey device) or Authenticator app – Ditch text message 2FA. SIM swaps are real. Hackers often have people on the inside at telecom companies.   Use a password manager (with Yubikey) – One unique password per account. Stop using your dog’s name.   Update your devices – Those annoying updates patch real security holes. Use them.   Back up your files – If ransomware hits, you don’t want your important documents held hostage.   Avoid public WiFi for sensitive stuff – Or use a VPN.   Think before you click – Emails that feel “urgent” are often fake. Go to the websites manually for confirmation.   Consider Starlink in case the internet goes down – I think it’s time for me to make the leap. Don’t Panic. Prepare. (Then Invest.)   I spent an hour in that basement bar reading about cyberattacks—and watching real-world systems fall apart like dominos.   The internet going down used to be an inconvenience. Now, it’s a warning.   Cyberwar isn’t coming. It’s here.   And the next time your internet goes out, it might not just be your router.   Don’t panic. Prepare.   And maybe keep a backup plan in your back pocket. Like a local basement bar with good bourbon—and working WiFi.   As usual, we’re on the lookout for more opportunities in cybersecurity. Stay tuned.   Author: Chris Campbell (AltucherConfidential) Profits from free accurate cryptos signals: https://www.predictmag.com/   
    • DUMBSHELL:  re the automation of corruption ---  200,000 "Science Papers" in academic journal database PubMed may have been AI-generated with errors, hallucinations and false sourcing 
    • Does any crypto exchanges get banned in your country? How's about other as Bybit, Kraken, MEXC, OKX?
×
×
  • Create New...

Important Information

By using this site, you agree to our Terms of Use.