Chart shapes and their characteristics3

Good morning.
I am Fox's eye.

Yesterday I explained about the “Inverse Head and Shoulders.”
Today“Double Top” I will explain.
Thank you in advance.

This is what a double top looks like.
There are two peaks. That’s the idea.
As an investor, you would say“couldn't update the high.”That’s what I would say.
When such chart patterns occur in the high-price zone, they negate the previous uptrendand may reverse into a downtrendas a possibility.

Often, before forming this double top, there was a rising trend.
Using the “Dow Theory”, the definition of an uptrend is“higher highs and higher lows.”.
If highs cannot be made higher, the uptrend may be negated.
I will post about Dow Theory here after finishing the explanation of the chart shapes and features on this note.

Just to summarize for clarity.
When a double top forms,“couldn't update the high.”is often the case, which means“negation of the uptrend”and, as noted earlier,indicating a potential reversal into a downtrend..

In actual charts, portions like these correspond to a “double top.”
This chart is slightly updating the high, but clearly the upper power is weakening.
Evidence that it is running out of steam.

Using a path can make it easier to understand.

This is just a historical test, but afterward“neckline”was breached, briefly“retraced”and then fell cleanly.
That is roughly how to use the double top.

I will also explain the neckline androll reversal(reb) later.

Tomorrow I will explain the “Double Bottom,” and the section on “chart shapes and features” will end.
After that, I will explain “candlesticks,” “Dow Theory,” “necklines,” and “roll reversals,” etc.

There are technical terms that may be unfamiliar, so studying can be tough.
I struggled myself as well,“grinding through the sand” with that feeling.
However, if you study properly and approach it, FX isn’t that difficult, and you can manage risk to some extent, so it isn’t as scary as you might think.
If you’d like, let’s continue studying together from now on.
Thank you in advance.

So today’s topic was the “Double Top.”
Good job today!