Video 25 A&B: Double Tops and Bottoms

Question 1

Double tops and Bottoms are types of _____________

Answer 1

Reversal Patterns

Question 2

DT and B’s are rarely perfect, so be flexible. Computers simply looking for test of prior high or low. Does not matter is not perfect.

Answer 2

Question 3

Here’s an example of context in double bottoms. SPY had a massive sell-off, with a double bottom near the close. There was so much selling pressure, that the double bottom didn’t apply because of what had been going on the left of the chart.

Answer 3

Question 4

When a pullback is small, Al uses the term flag because…

Answer 4

It signifies trend resumption if more probable than trend reversal.

Question 5

A bear flag is a small bull trend (or TR). Like any bull trend, it can end with a double top

Answer 5

Bear Trends often have Double top Bear Flags

Question 6

How many bars consist of a Micro DT or DB?

Answer 6

2-5 bars

Question 7

Small Patterns are too small for a major reversal. See Photo

Answer 7

Question 8

Whenever the market does something, it usually has to test something, before it decide what to do next.

Answer 8

The market wants to confirm it’s strong support

Question 9

“ET” means

Answer 9

Expanding Triangle

Question 10

Example of Neckline

Answer 10

Question 11

Anytime the market goes sideways for 20 or more bars, stop using the name pulback, and use the name “Trading Range.”

Answer 11

A Trading range always has a reasonable buy signal and a reasonable sell signal.

Question 12

When there’s both a double top and a double bottom, we are in a _____________

Answer 12

Trading Range