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This chart of Amazon.com is a great example of a double top in action.



The Precision in which markets will double top is amazing. Sometimes the market will come to an old price level and almost hit it exactly.

Some tell tale signs that the second high will be a double top are.

# 1 - Less Volume on the Second Peak. Markets top on declining volume.

# 2 - Less Momentum. Look for divergences in your momentum oscillators.

# 3 - A steeper than normal decline just preceeding the secong top. If the stock or commodity has been making 10 point corrections and makes a 20 point correction and comes back to the old price high this is a sign of weakness.

# 4 - Excessive speculation. If everybody is talking about the stock or commodity it may be time to be a contrarian.

# 5 - If it looks like an Elliot 5th wave it may be a double top. Elliot 5th waves have the charactoristics described above. Click Here 2 Learn More on the Elliot Wave

O.K you think it's a double top now what. Well the market could just keep on going. So if your a trader this is where you stratigize. You have to get an entry signal to go short and you have to use stops. To learn entry & stop techniques to trade this topping pattern think about buying my course I guarantee it will help!

The Profit Trading Course