Distinguish Retracement and Doubletop. trend or momentum is changing or not
In an Uptrend (or Downtrend), retracement will be happened. But At a point there may be double top indicating the trend change.here are some feature of both to identify the pull back which is a retracement or it is for trend change(Doubletop)
Double top only happened on the top of a move. Ie. it happened only after a clear move to up or down. And the point of doubletop will be long in distance for a sideways move or volatility.
While the retracement happened in every up move that may happened just above(below) the sideways channel
In double top, last resistance will not be broken in up move
In retracement, every resistance will be broken in up move
In double top, last support may be broken in pull back just for a while indicating trend change
In retracement, last support will not be broken indicating healthy trend
Double To Usually leads to trend Reversal or Change in Momentum while retracement may not lead to trend reversal
In Retracement, Price move very slowly to downward direction or retracement will only have little Slope.
Double To Usually leads to trend Reversal or Change in Momentum while retracement may not lead to trend reversal
In Retracement, Price move very slowly to downward direction or retracement will only have little Slope.
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