“Two tops that approximately the same price level” is only half the explanation.  Prices must decline below and close below the low point established between the two tops (the middle reversal point) before a double top has been activated.  In a double bottom, prices must close above thehigh pointin between the two bottoms to establish a double bottom.  Taking the distance from the double top or bottom to the point in between and adding that distance to the breakout level can determine the measuring objective.  The middle reversal point will also provide support for any pullback.

Anglo American Double Bottom:

Double Top – Platinum Index:

Gerhard Lampen

Head Sanlam iTrade

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  1. Justice

    `i would like to know if there are seminers in durban 4 online trading.if there is please email me details,I would like to learn trading,and I don’t believe I can just trade without some back ground knowlegde.

    • isayitrade

      Hi Justice. We have nothing planned, but there are excellent online training courses. JustOneLap is really good and they do it rthrough webinars, so you can download it and view it whenever. And it is free. You will find a good Learning Centre if you register as an iView client on our website: http://www.sanalmitrade.co.za. It is free for this year if you liked our Facebook page and indicate Facebook as your referral source. https://www.facebook.com/SanlamiTrade

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