The Double Top, also known as an M pattern, is a bearish reversal pattern that typically appears after an uptrend. It consists of two successive peaks separated by an intermediate trough that defines the neckline.
The pattern is considered confirmed when the price breaks below the neckline. The theoretical price target is then calculated by projecting the height of the Double Top downward from the neckline. A pullback to the neckline may also occur after the breakout.
The Double Top / M Screener automatically scans the market for stocks forming an M pattern within the last 50 bars. It identifies the pattern at different stages of its formation, before or during confirmation through a break below the neckline.
Results are ranked according to the pattern's stage of formation. Different stages can also be included or excluded from the results, allowing you to focus, for example, on patterns near their peaks, those approaching the neckline, or those currently breaking below it.
A general filter applied on the daily timeframe, based on price and trading volume, allows you to select the desired level of liquidity.
Many parameters allow you to adapt the search to your own criteria. All settings can be adjusted directly from ProRealTime's “Variables” menu, without modifying the code.
Adjustable validation criteria:
Available filters:
General filtering:
Video presentation:
Details of available settings:
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Disclaimer
Our proposed tools (indicators and screeners) are not investment advices but tools allowing everyone to find specific graphic configurations. The automated trading systems offered have been developed and optimised using historical data; however, past performance is no guarantee of future results. Investing in the financial markets involves risks up to and including the total loss of capital. The user of the proposed tools understands and accepts that the use of these tools is under his sole and entire responsibility. P2C Trading declines all responsibility in the use of the tools and the consequences that would result.
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