Double Tops   

Two well-defined peaks, separated in time but at nearly the same price level, leading to the formation. Prices trend upward over the short term and usually do not rise above the left top. There should be at least 1%-2% decline between two tops, measured from high to low. Two distinct tops with a price variation between peaks of .3% or less. Tops should be a few intervals apart. After the second top, price must close below the confirmation point without rising above the right top high. The confirmation point is the lowest low between two tops.

 
Example
 
graphic
 
 
 
Statistics
Percent of successful formations – 69%
Failure rate – 17%
Average time to throwback completion – 2 hours
 
Trading tactics
Compute the formation height by subtracting the confirmation point low from the highest high in the formation. Subtract the difference from the lowest low between the two tops. The minimum price move is the result.