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AUD/USD In Lengthy Double Top After Short Uptrend

This double top formation is a quite big one considering that the preceding uptrend did not last too long and did not gain many pips for the Aussie. Nevertheless, it satisfies the main requirements of a valid double top pattern and can be used for a bearish breakout setup.

The pattern tops are marked with the upper horizontal yellow line. The lower horizontal yellow line marks the neckline of the double top. The cyan line is the entry level positioned at 10% of the pattern’s height below the neckline. The green line is the target level positioned at 100% of the same distance. I will set my stop-loss to the high of the breakout candle or to the high of the previous candle if the breakout one is trading mostly outside the pattern. I will ignore bullish breakouts from this double top. You can click on the image below to see a full-sized screenshot of the chart:

AUD/USD - Double Top Pattern on Daily Chart as of 2017-04-09

I have built this chart using the ChannelPattern script. You can download my MetaTrader 4 chart template for this AUD/USD pattern. You can trade it using my free Chart Pattern Helper EA.

If you have any questions or comments regarding this double top on the AUD/USD chart, please feel free to submit them via the form below.

Posted on Forex blog. Click Here For Original Source Of The Article

About Louie Lewis

Louie Lewis
Successful forex trading starts with you first. Then comes the actual strategies and techniques. I have been involved with forex and forex trading for a few years now. It is a wonderful way to build wealth. The learning never stops and I want to help others along their journey into this wonderful market of opportunity.

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