not really. we're trading the trendline not the double top pattern. If you're trading the double top pattern, then it's two early, if the former, then it's swak. To confirm the breakdown, the candle has to close below the trendline. That's the only time we short.
So if it bounced of, it bounced off
That double bottom support is a valid support line, hence we have to protect our position with any of the following:
* Trailing stop
* Breakeven stop
* Stop loss
I would go for the breakeven stop, if it hits the double bottom support, adjust your stop to breakeven. I don't want to lose my precious position with a trailing stop. Sure you exited with a profit but what if it breaks the double bottom support? You would have to deal with "sayang" emotions hehe
that is all
Rob Booker is a forex trader who uses Support/Resistance trading only; no indicators. I'm using this myself in forex. I'm just trying it out in stocks. Since it's based on Support/Resistance it should work in any financial markets. However, we have to back test it just to be sure that it works
what if AAPL bounced off the neckline?there'd still be a potential for a triple top right? what woud ur strategy be then? short at 128, buy back at 120 in case it bounced?
