Double Top on the Daily Chart of CAD/CHF

CAD/CHF is not one of the most popular Forex pairs, but I often observe some tradable technical patterns on its charts. The daily timeframe is currently showing a double top formation that looks to be capping the post-SNB recovery rally. Both peaks are significant enough and with a noticeable trough between them; the duration of the pattern confirms its validity too.
You can see the pattern marked with the yellow lines on the screenshot below. The bottom yellow line denotes the neckline, while the upper one marks the peaks. The bearish breakout entry line is cyan, it is placed at 10% of the pattern’s height below the neckline. The green take-profit line is at 100% of the pattern’s height below the neckline. I will only trade a downward breakout in this setup as the double bottom is a trend reversal pattern. I will set my stop-loss to the high of the breakout candle. You can click on the image to see the full-sized chart:

I have built this chart using the ChannelPattern script. You can download my MetaTrader 4 chart template for this CAD/CHF pattern. You can trade it using my free Chart Pattern Helper EA.
Update 2015-05-07 9:56 GMT: The breakout trade has been entered at 0.75348 about 45 minutes ago with stop-loss at 0.76248 and take-profit at 0.71937. The breakout currently looks rather strong:

Update 2015-05-08: The trade lasted less than a day as the stop-loss has been hit yesterday at 22:40 GMT:


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