Technical Market Research and Investor Coaching

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Chart Patterns

Double Top

Pattern Description:

The double top is a major reversal pattern that forms after an extended uptrend. The pattern is made up of two consecutive peaks that are roughly equal, with a moderate trough in-between. As illustrated below, a double top consists of two well-defined, sharp peaks at approximately the same price level. A double top occurs when prices are in an uptrend. Prices rise to a resistance level, retreat, return to the resistance level again before declining. The two peaks should be distinct and sharp. The pattern is complete when prices decline below the lowest low in the formation. The lowest low is called the confirmation point.
Double Top

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Creating Local Data in MetaStock XV

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Featured Article

Is a subscription to the stock performance ranking service worth $99 a year?

by Tim Straiton
Is a subscription to the stock performance ranking service worth $99 a year? The Stoxxtip Stock Scanning Concept The Stoxxtip stock scanning module is based on momentum trading over an extended time frame of 40 weeks according to the following formula: P= M - Mx where: M= the latest closing price Mx= the closing price x periods ago   Momentum Trading Bullish momentum trading is a strategy which scans for stocks exhibiting a long term continued upward...

Technical Review

GBP /US$ - Short term recovery in a long term bear trend.

2023-07-05 by Tim Straiton

Sterling is currently trading around the 1.27 level against the US$ and is above the rising 40 week moving average of 1.2171, which is positive in the short term. We estimate the upside target to come in around the 1.37 level, which could well mark the end of this bullish phase. The 14 week relative strength index is now at 63%, which is not yet in an overbought area.

Looking further out, the sharp drop seen in August 2008 from 1.99 to 1.35 sparked off a long term bear trend, with a series of lower highs and lower lows, which is still valid today. It would therfore seem appropriate to hedge long positions on significant further moves to the upside.


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CMC Markets

Site Description:

International currency and commodity brokerage.