Double Top
BearishReversalBeginnerTwo failed attempts at the same high. The ceiling holds.
Verdict: SkipBitcoin 4H: 19 trades, won 53%, avg trade −0.1% vs random day —. Backtest
Price rallies hard and hits a high. Then sellers step in and push it back down.
step 1/7
Trade rules
| Direction | Short (sell) |
|---|---|
| Entry | A candle CLOSE below the valley (support). |
| Cancelled if | Price closes above the higher of the two tops. |
| Target | Same height, projected from the breakout |
3 common mistakes
- Calling every two highs a double top before support breaks.
- Stop too tight: just under the top gets wicked out.
- Ignoring the weak 1:1 reward-to-risk.
Backtest
same rules every time · equal size · no fees · method| Market | Trades | Won | Avg trade | Random day |
|---|---|---|---|---|
| Bitcoin · 4H · 2017-2026 | 19 | 53% | −0.15% | — |
| US large caps (50) · 1D · 2016-2026 | 178 | 48% | −1.83% | — |
Verdict: SkipLost money on average in every market tested.
pattern −2.9%
pattern −326%