So, no double top means buy the dip... right?

Discussion in 'Technical Analysis' started by Saltynuts, Jan 27, 2020.

  1. Stocks appear set to open waaaay down again. I've heard you guys mention double tops before. Since there has not been one, is the smart money buying this dip? I hope lol.

    Thanks!
     
  2. It's BTFD until you get bludgeoned for doing so. (Of course you don't want to buy -2% down if it's going to be a 10-20% dip.)

    As for "double top".... it's possible recent action was the "left side" of a 2X top... a thing to keep in mind.
     
  3. Haha, no. Without a macro event, then yes I'd look for double top. But with the news being what it is, I can't say.

    That being said, lots of shorts going away. 20% more accounts are long compared to 20 days ago. That's excessive. It means (probably) that there was a lot of covering in this dip.


    upload_2020-1-27_8-27-47.png
     
    murray t turtle likes this.
  4. Here4money

    Here4money

    It's election year....I've been waiting for the reversal, though I didn't expect it this early. I hope to be wrong.
     
  5. Pekelo

    Pekelo

    There WAS one, look again. Even post #2 clearly shows it. SPX 3338 three days ago and 3334 on Friday with a 35 points dip between them. Nasdaq 2nd was a higher top, so average them out...

    ES futures were classic and symmetric at 3338.

    You can still buy the dip though....
     
  6. maxinger

    maxinger

    Professional writers talk about double tops and those things.


    Professional traders talk about
    double top, triple top, multi top and whatever.

    and those tops could be

    CONTINUATION OR
    REVERSAL PATTERN !!!
     
  7. That's a good point, clearly a double top in extended hours on the hourly. But those are only good for short term reversals from what I can tell.

    I would absolutely love a rip up to ATH again because that would be a significant double top. Then we'd be talking.
     
  8. Here4money

    Here4money

    I sense a bit of sarcasm there Pekelo. What are your actual thoughts on this one?.....I saw it starting last week but this gap is a bit more than I've seen in a while.
     
  9. Pekelo

    Pekelo

    We probably close the gap at least half way. I am not sure the current state of the virus warrants this big of a gap/fear.
     
    nooby_mcnoob likes this.
  10. Here4money

    Here4money

    Reading 80 dead so far, the Chinese confirming they can't find a source from which it mutated from & spreads asymptomatically. Problem is, the Chinese tend to hide information.
     
    #10     Jan 27, 2020