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Double Top (Potential) Scanner



Double Top (Potential) Scanner

What is a Double Top (Potential)?

Double Top (Potential) is a bearish reversal chart pattern that is still developing after an uptrend. It indicates that buying momentum may be weakening as the price attempts to form a second high near the previous peak. Since the neckline has not yet been broken, the pattern remains unconfirmed and should be monitored for a potential bearish breakdown.

How the Double Top (Potential) Pattern Forms

  • The price rises and forms the first high during an uptrend.
  • A temporary pullback creates a support level known as the neckline.
  • The price rallies again and approaches the previous high.
  • The second peak forms near the first high, but the neckline remains intact.
  • The pattern becomes confirmed only after the price closes below the neckline.

Trading Strategy

  • Monitor the price for a confirmed close below the neckline before entering a bearish trade.
  • Many traders place a stop-loss above the second top after confirmation.
  • Use trading volume and momentum indicators to validate the potential breakdown.
  • Avoid entering early, as the pattern may fail if the price breaks above the recent highs.

Advantages

  • Identifies potential bearish reversal setups before confirmation.
  • Allows traders to prepare entry and risk management plans in advance.
  • Provides clearly defined neckline and resistance levels.

TSR Scanner Features

  • Real-Time Alerts: Set up alerts to get notified exactly as the condition meets.
  • Fine-Tune Filter: Combine with volume and TSR strength index for better accuracy.
  • Custom Tracking: Filter signals based on specific stock baskets or your personalized watchlist.
  • Backtesting Capabilities: Evaluate historical data to gain confidence.
  • Flexible Timeframes: Filter intervals from 1-minute to monthly ticks.
  • Auto Refresh: Keeps your scanner data continuously updated.

Fine Tune : You can customise these screeners by clicking on 'Fine Tune Filter' Option

Caution : All these screeners are crafted based on some historical scenarios which may / may notbe applicable here. We recommend to fine tune them according to current market conditions or seek expert advise before taking any decision.
Double Top (Potential)
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