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Double Top and Bottom ( Reversal ) chart pattern volatility and hight

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 private private,

 Friday, August 1, 2014

Double Top and Bottom ( Reversal) chart pattern: based on your experience the target price is equal the pattern's height ? Moreover do you calculate the volatility in percentage or units , what is it the reasonable range ?


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4 comments on article "Double Top and Bottom ( Reversal ) chart pattern volatility and hight"

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 Vaibhav C., technical analysis

 Wednesday, August 6, 2014



according to me...any pattern targets can not identify like this. you have to consider oscillators and price levels. but book wise pattern height is the target.


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 Evan M., Optical Software Engineer at Radiant Zemax, LLC

 Tuesday, August 19, 2014



I only look at the target price based on the strongest time frame with a divergence and the level of the MACD.


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 private private,

 Tuesday, August 19, 2014



It's implied that the oscillators are main tools to define the chart patterns. I have two questions : what do you mean with strongest time frame ? 1-2 weeks example or longer or shorter .. and the divergence is refer to the index or the stock ?


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 Evan M., Optical Software Engineer at Radiant Zemax, LLC

 Wednesday, August 20, 2014



Hi Antonio,

I normally look at various timeframes to understand the type of foundation (strength) the chart has. Therefore, I can go as high as a monthly chart, and as low as a 1 minute chart. Since I use it for options trading I normally look for patterns in the higher time frames (monthly, weekly, daily) and then trade on the shorter time frames when they are moving in the same direction. The divergence is referring to the difference in the level of the MACD versus the PRICE for any chart. It can be SPY, FB, GOOD, FSLR, VXX. I never care what the ticker is (I only need to know that when it comes time to place an order). I simply just trade patterns.

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