Double top/bottom question

Discussion in 'Technical Analysis' started by jonbig04, Jun 13, 2009.

  1. Quick and easy question regarding Suri Dudella's explanation of the standard double top/bottom pattern. He says "The size of the retracement (at least 15% from the first swing) between the two peaks/troughs also indicates the likelihood of the pattern's success."

    My question is about the 15%. Does this mean (assuming double top scenario) that if price rises to 100 he would like to see it drop 15% to at least 85 before he considers that a "decent" retracement?

    Just clarifying, I know its an elementary question, but I'm trying trying to get a little more mechanical in my trading.