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Double Tops


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#1 4caster

4caster

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Posted 20 January 2023 - 10:36 AM

Double tops can be very helpful when trading the mkt and here is an example of that. Last week the

MACD Histo(2,10,14) on the daily SPY chart began trending down giving a signal that the rally was

about to come to an end. On Jan. 17 the SPY put in an intraday top at 400. On Jan. 18 the SPY put

in another intraday top at 400 confirming a double top. I then bought the Jan. 20 395 Puts on the SPY

at .60. As the SPY declined, when the counter moves put in lower highs and didn't go above the

downward sloping trendline from the second part of the double top at 400 I stayed in the trade. When

the SPY looked to me like it was trying to put in a base in the 394.40 area I sold the Puts at 2.60. As

it turned out I sold the Puts too early, but you know the one about the Bulls. Bears and the Pigs. 

Gotta love those double tops. May all of your trades be profitable.