Double Tops and Bottoms (DTs & DBs) Flashcards
Tests of Support often have many DBs
Tests of Support often have many DBs
DT Reversal 2nd High is Test of 1st High
DT Reversal 2nd High is Test of 1st High
If the market Rallies above the neck line of a DB what is likely to occur in the market?
a TR or perhaps a Bull Trend
Note: Every pattern no matter how good fails sometimes, that includes DTs and DBs
Note: Every pattern no matter how good fails sometimes, that includes DTs and DBs
Does a TR always have good Buy and Sell setups?
Yes it does, the market is balanced and therefore sideways and in BOM
If the market fails at a DT what upside target should I look for first?
Look for a MM up. Look for the nearest Target first and it if gets there and surpasses that target then look for the next target. (Always take partial profits at the first target)
If the market fails at a DB what downside target should I look for first?
Look for a MM down. Look for the nearest Target first and it if gets there and surpasses that target then look for the next target. (Always take partial profits at the first target)
DB - Traders Hold for a MM Up
DB - Traders Hold for a MM Up
Is every Reversal a Type of DT or DB?
Yes (See Chart Below)
Nothing in the markets is ever 100% so be prepared for several Reversals
Nothing in the markets is ever 100% so be prepared for several Reversals
It is very important to how I classify DTs & DBs because the computers are; therefore so should I because the computers control the market
It is very important to how I classify DTs & DBs because the computers are; therefore so should I because the computers control the market
Do Bear Trends often have DT Bear Flags or DB Bear Flags?
Bear Trends often have DT Bear Flags
Do Bull Trends often have DT Bull Flags or DB Bull Flags?
Bull Trends often have DB Bull Flags
a DT or DB can be with a _______ continuation pattern or a _______?
Flag continuation pattern or a Reversal; many of them are present on every chart
Never lose sight of the goal Flags are Rarely Perfect
Never lose sight of the goal Flags are Rarely Perfect
DT or DB is Rarely Perfect
DT or DB is Rarely Perfect
Every MTR is either a DT or DB
Every MTR is either a DT or DB
Why does a DT often lead to a Reversal down?
Bulls Buy at a High expecting the market to continue higher and they then get bad follow-through and are disappointed by the big sell off now they begin to think the market cycle is entering a TR so they try to get out BreakEven which causes a DT and the eventual reversal down
Why does a DB often lead to a Reversal up?
Bears Buy at a Low expecting the market to continue Lower and they then get bad follow-through and are disappointed by the big rally up now they begin to think the market cycle is entering a TR so they try to get out BreakEven which causes a DB and the eventual reversal down
Anytime there is a Trend Reversal and it does not look particularly strong it is probably a Minor Reversal and not a Major Reversal. Sometimes a Minor Reversal can become a Major Reversal
Anytime there is a Trend Reversal and it does not look particularly strong it is probably a Minor Reversal and not a Major Reversal. Sometimes a Minor Reversal can become a Major Reversal
How many Bars are Micro DTs and DBs?
Micro DTs and DBs are 2-5 bars. These Micro DTs and DBs are on smaller TimeFrames.
DB Bull Flag and DT Bear Flag is a PB in Trend
DB Bull Flag and DT Bear Flag is a PB in Trend
DB Bull Flag and DT Bear Flag is usually not Perfect
DB Bull Flag and DT Bear Flag is usually not Perfect
Triple Bottom is usually a complex DB
Triple Bottom is usually a complex DB
If a market keeps trying to do something and FAILS it willl than usually proceed to do the opposite
If a market keeps trying to do something and FAILS it willl than usually proceed to do the opposite
Does a Triangle contain a DT and DB?
Yes it does (see chart below)
Triangles contain a DT and DB
Triangles contain a DT and DB
TRs always contain DTs and DBs; the market is in BOM
TRs always contain DTs and DBs; the market is in BOM
