double top, page-9

Hi krashy,

that isn't a valid double top. Mitta' rules above aren't too bad however I'll add one important fib based rule to that.

Where the first trough (the middle) is labelled as B, price may not retest that level once it has exceeded the 38.2 of AB (see chart below). The reason behind this is that by retesting the B low, the structure of the price at those lows becomes stronger. Rather than having one set of buyers at that level, you now have two. Essentially it has created an impulsive bullish structure within a larger potentially bearish one. The failure rate of a DT occurring is increased significantly.