A Forex Trading Strategy such as the Double Top Breakout price pattern has a high possibility of breakout to the ” downside “.
It is considered a Very “ Bearish ” price formation.
Ever since the first sign of US credit crunch emerged…followed by series of major banks collapse one after another…
The ” Double Top Breakout ” formation is one of the most common price pattern that can be seen across all currency pairs.
Reason being is very simple here - The market is very Bearish and everyone is frantically SELLING ( Fear ) …
As a forex trader, we would then take advantage of this kind of extreme ” financial crisis and bearish sentiment ” of course…
The trend is mostly one way ( Down Trend ) for that period that lasted for almost 6 months…
Most of the forex traders out there have made ” quite a fair bit ” during that period …although the entire financial market is in a BLOODSHED condition..
Unfortunately, Short Selling on the Stocks market has been banned during that period but that does not apply to the Forex market though.
That is why most forex traders are laughing their way to the bank for a few months riding on the gigantic ” Bearish ” trend !
How about yourself ?
Alright…let’s not deviate from the main objective of this post ya.
Let me show you how I trade using this forex trading strategy ( Double Top ) to my advantage and made over 200+ Pips for myself..
And how you can also capture these Pips for yourself too..again & again once you see this set up.
Here’s a screen-shot of the ” Double Top Breakout ” price pattern ( GBPJPY ) to share :
As well as the ” Entry, SL & TP ” for this trade ( GBPJPY ) :
Once the ” Sell ” order is triggered…
The price plunge all the way down and hit our TP @ 127.72
Which gave me a nice profits of USD $2761.26 ( 250 Pips )
Trading a ” Double Top Breakout ” has been one of the simplest and proven way to capture those major movements and pips …seriously.
Like I mentioned above…..this is especially true during the period of Global Finance Crisis where so many major institutes such as Lehman brothers bursted…
And the entire financial market is crazily ” Selling “ off their positions and took all the major currencies sinking below a level that’s rather unexpected.
Just like any breakout pattern, the double top is also prone to a fake breakout too.
Therefore, it is definitely essential to equip yourself with skills to filter off these ” signs of fake breakout ” ..
And possibly put all ” Odds on our side “…in order for a high success rate trade
Here’s how I filter this double top breakout trading ( as can be seen above ) :
1) Double Top Price formation - Indicates a ” tendency ” for a downtrend ( SELL )
2) Price start plunging down and even broke the previous support level
3) Exceptionally LONG BEARISH CANDLE seen ( very strong selling interests + volume )
4) Downtrend then took a break ( forming the BEAR FLAG ) - Which is our chance to enter
5) ” Sell ” pending order set + Stop-loss at 131.45 ( 125 pips ) + TP set ( 250 pips )
- Order activated and the BEAR charged all the way to our TP target at 127.72
( PS: I remember during the moment when the TP was hit….I was still at the GYM working out. When I came back and check the position, a nice 250 Pips and profits of USD $2761.26 already credited into my account….no joke )
Sound nice & simple isn’t it ? ” Set & forget indeed “…*smile*.
I really think all forex traders ( including yourself, myself, our friends, our cousins….bla bla ) should really ” ENJOY” the whole forex trading process ..
This isn’t the case as almost 95% of these forex traders would enter the market with intense stress, fear and practically PRAYING that they would make a profits for the trade this time ….instead of ” ALWAYS” hitting the Stop-Loss.
Well…if you are also feeling ” this way “.
Then maybe you can try a forex trading strategy such as the ” breakout trading ” too..
It has enabled me massive returns, nice pips as well as a nice return every single month for years now.
I hope you can also achieve the same too & confidently enjoy the entire forex trading game!
Alright..so much for this forex trading strategy.
Hope it has again enlighten you in some ” beneficial” way.
Happy trading, Happy hunting and more ” Explosive” gains to you too !