Double top?

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tunnel

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Post Number: 2
Registered: 12-2004

Rating: N/A
Votes: 0


Tuesday, December 28, 2004 - 06:54 pm:

I'm just starting in TA and doing a little practice on some shares, building up a few watch lists etc. If anybody could give their opinion on the following question it would be greatly appreciated.

I'm trying to decide if the chart for Macmin shows a double top or an accumulation channel. The channel looks a bit wishy-washy (technical term) to me

. MMN chart

mbike_freak

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Post Number: 44
Registered: 04-2004

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Votes: 1


Wednesday, December 29, 2004 - 08:03 am:

i wouldnt classify this as a double top as it is not in an uptrend. it is between consolidation. So therefore i don't think it is valid. Hopefully some one with more experience and knowledge will present their views. Have a look at this chart of hdr. This is what i would consider a double top. as it is at the end of an uptrend.

hope this helps.

regards mbf.

lee_taylor

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Post Number: 57
Registered: 12-2003

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Votes: 0


Saturday, January 01, 2005 - 05:21 pm:

my two cents:

1. there's not enough chart here to come to much conclusion about anything - always look at the big picture. But I'm assuming you did and needed to post zoomed in for all to see, which is fair.

2. Yes, there's a Shoter term double top, and what you have labeled "double top support" is the neckline. The rule is, the bigger the picture the pattern occurs on, the bigger it' simplications. This is only a short term double top.. factors making it more significant is if it was a historical turning point, etc, which I can't tell from that amount of the chart.

3. And yes there's a bit of a channel there. So you can have both. I wouldn't make assumptions at this point - is it an "accumulation channel" or a "distibution channel".. generally the probability favours that the pattern will be a continuation patter, so if it is an uptrend, you'd expect the stock to breach resistance and continue up, and if it was a downtrend, you'd expect it to breech support and continue down.

If it broke out of pattern against the direction of trend, you might look for additional confirmation before trading the breakout, eg retracement to breakout point instead of trading on the breakout.

Main things in my mind and that work well in my trading plan are

bigger picture has bigger implications, and nothing is black and white, one or the other - you will find patterns within patterns within patterns. I guess the art of it is learning what's relevant and what isn't, and the main thing there is to trust with the trend and be patient for a signal that corresponds to your trading plan.

Best of luck with your efforts and enjoy yourself!

Happy Trading

Lee Taylor

enig

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Post Number: 8
Registered: 10-2003

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Votes: 0


Saturday, January 15, 2005 - 09:18 pm:

this is the first time i have posted a chart so i hope it works
in my view telstra is a legitimate double top for these reasons
the double top occurs at EXACTLY the same value (should not be any more than one cent for stocks over a dollar
chart is supported by a strong divergence
hope this helps
most good trading books have a section on patterns etc
cheers tls

thresher

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Post Number: 5
Registered: 12-2004

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Votes: 0


Monday, January 17, 2005 - 08:20 am:

Enig
I would like to see the price breakthrough the neckline (4.86) with high volume to confirm a double top. Next support at 4.64.
Also have a look at ANZ below which is could be in a process of forming a double top.

alann

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Post Number: 62
Registered: 05-2004

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Votes: 0


Wednesday, February 02, 2005 - 04:39 am:

tunnel

It is not a double top. A double top identifies the end of an uptrend. Your chart clearing shows a ranging market. Your channel resistance line is also set too high. You should use the peak right after 12May04. The three peaks that stick out above the resistance line are false breakouts.

Alann,

I cannot predict the future I can only follow the trend. Why? Because the trend is my friend.

maxboost

Member

Post Number: 99
Registered: 12-2005

Rating: N/A
Votes: 0


Sunday, December 03, 2006 - 05:29 pm:

Howdy,
Any opinions on this one?
Daily chart ranging between $24.50 to $23.80
Weekly chart- inside week, lower low will signal start of down phase.
Monthly chart- at the top and in up phase, keeping eye out for reversal next month.
Or is that a handle on the daily and weekly forming?