Go back to Part 1: Triple Top Formation.Important Characteristics of Triple Top PatternExisting Trend:There should be an established existing UPWARD trend prior to the pattern.Shape of Triple Top Pattern:1) The Three Peaks:The peaks / tops should be sharp and distinct / well separated. The price peaks do not have to be exactly the same, but it should appear reasonably equivalent to each other.If the last top (3rd peak) is lower than the middle top (2nd peak), there is a relatively higher chance of stronger decline. A lower top in the last peak...
Friday, August 28, 2009
Sunday, August 16, 2009
TRIPLE TOP PATTERN – Part 1: Formation
Triple Top Pattern is a bearish reversal pattern that normally forms after an extended uptrend, which marks a shift in trend from bullish to bearish.The Formation of Triple Top PatternTriple Top Pattern contains three consecutive, distinct & sharp peaks / tops at about the same price level, with moderate troughs in between the peaks, followed by a breakout through a support.This pattern forms when the price is in an existing uptrend. It occurs...
Sunday, August 9, 2009
Trailing Stop Order
Trailing Stop Order is a Stop Order that continually adjusts the Stop Price as the market price of the security moves (i.e. trailing the security’s market price).The Trailing Stop Price is placed at a set distance (either as an absolute dollar or as a percentage of the market price) below or above the market price, depending on whether it’s on a long or short position.The Trailing Stop Price will then adjust as the market price of the security moves, maintaining the set distance.If the market price hits or passes through the Stop Price, the order...
