EURUSD - Double Top Pattern - Price at Double Resistance

Hi Traders!
The market is in an Uptrend.
Before we get deep into the analysis, let's take a look at the Daily Timeframe:

We here see strong bullish Movement and a bullish Channel.
It is at the Top of the Channel now and made the last movement almost without any Retracement.

This is not a sign of a healthy trend.
Why? To run a big distance, you probably make some stops.
Otherwise you run a short distance quickly and get side stitch ;)
That's why we're looking for a Retracement - and why we're trading against the trend.

Now let's get a timeframe lower - to the H4-Timeframe:

Here you can understand where the main Support and Resistance Levels are.
It is often better to draw them at the higher timeframe than the Entry Timeframe, because they are more stronger.

Now we go to the Entry Timeframe.
We can see the market forming a Double Top Pattern.
It is at Resistance plus at the Top of the Channel.

We recommend to take a Trend Reversal Pattern (Engulfing, etc.) as your Entry Trigger.



Thanks and successful Trading :)!

Komentarz:

Are you looking for the RED BOX? Here is it: