Tops chart patterns

Tops are one of very known stock chart patterns used by technical analysis. You will be able to find them on chart based on these hints:

1. price made 2 or more almost similar highs
2. price retraced back more then 80% after each of high

Trading rules

The most obvious trading rules tell that you have to wait to breakdown of horizontal support level of this stock chart pattern. Then enter short trade and expect further weakness.

Stop-loss level should be above support level

You can see that this strategy was really successful in this case of NYX.

You can also wait for first pullback back to former support level which acts now as resistance level. And enter trade in this situation. Such strategy was also possible for NYX stock chart above as you can see.

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