I am concerned about the dynamics of this challenge to the all time high of the Dow. The SPX and NQ were both higher previously, and gold was lower. Is this a double top? Is it time to short heavily? Best Regards Oddi
Possible. But I think we are going to squeeze some shorts first, break up those highs, and then , when things look good, we get a corrrection/reversal (?). At least this is the way I am going to trade those levels.
there is no such a thing as double top. it is a myth. no half respectable trader would use it to make trading decisions.
Oh yes, there are plenty of double tops.....after the fact, when one looks at the past data. We will know next week, I guess. Meanwhile, I stay with my long only systems right now.
If the Dow Jones can surge hard above the old all-time high AND close above it on the same day, the old high would be a decent place to place initiating sell-stop orders. It might be good for atleast ~200 points to the downside. We'll see.
That's it. You don't know if it is one until after the fact. The price either stalls out at around the same level and declines or it breaks through. Only time will tell. Volume levels can help identifty it but volume does vary so that's not a sure thing. If it breaks through on weak volume though it's more likely to fail. BTW I've heard that triple tops and triple bottoms are even stronger than double tops and bottoms.
Who told you that? What are you talking about? This is one of the more common chart formations in technical analysis.