Down-Sloped Double Top on H4 Chart of EUR/USD

On a longer-term chart, this pattern might seem insignificant, but the four-hour chart is clearly showing a double top formation that gives a bearish signal to all TA-minded traders. It peaks the short-term correctional uptrend wave that has lasted since January 26. It is easy to see the additional confirmation for a downward trend restoration in the pair’s failure to set a new higher high after February 3 maximum.
You can see the pattern delimited with the yellow dash-lines. Only the bottom breakout will be considered for a trading signal. The cyan line shows a buffered entry level, while the green one is a target level for profit-taking. The high of the breakout candle will serve as the technical stop-loss in this trade.

The chart was built using the ChannelPattern script. You can download my MetaTrader 4 chart template for this EUR/USD pattern. It can be traded using my free Chart Pattern Helper EA.
Update 2015-02-10: The short position has been entered at 1.12822 on a downward spike yesterday. It pulled back immediately but is returning below the entry level as of now. The stop-loss level is set to 1.13601, the take-profit is at 1.11059:

Update 2015-02-12 20:39 GMT: The trade has hit a stop-loss about 7 hours ago. All three attempts of a real breakout had failed:


If you have any questions or comments regarding this double top on EUR/USD chart, please feel free to submit them via the form below.

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