Trading the Double Top Pattern

Double Top NFX Small

A term used in technical analysis to describe the rise of a stock, a drop, another rise to the same level as the original rise, and finally another drop.

The double top looks like the letter "M". The twice touched high is considered a resistance level.

Implementation

In the case above I looked for stochastic to get over bought and the second top to either meet or retreat shy of the first top. Stochastic also made a higher high creating negative divergence.
About Cousin Vinny
Cousin Vinny is the internet pseudonym for TLLeBlanc, Architect who started trading in 1987. Practicing Architecture for over 30 years, Mr. LeBlanc found the technical aspects of building, design and construction prepared him well for fundamental and technical analysis.

He is a family man, a native of New Orleans, currently residing in New Jersey.
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