Clarification needed: Double top

Discussion in 'Technical Analysis' started by bvpraveen, May 17, 2006.

  1. bvpraveen

    bvpraveen Active Member

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    Hai,

    [I'm learning about technical analysis]
    I've attached the chart of Satyam computers.

    1. Has it formed a double top? (From its expected growth I dont think its price will decrease...but technical analysis tells so...)
    2. Can double top form in a short duration? (like around 40 days in this case)

    Praveen.
     

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  2. Agilent

    Agilent Member

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    Praveen
    Good questions

    It does look like a double top, but the volumes are shrinking on declines, which means it could well be a consolidation, rather than reversal

    Meanwhile , see this linkhttp://www.chartfilter.com/reports/c32d.htm

    the example here shows a double top spanning just a few weeks ... so 40 days is defy not a short duration

    By the way in recent weeks lots of scrips would have gone into such patterns (many cement stocks for instance) but v few would be undergoing reversals

    AGILENT
     
  3. bvpraveen

    bvpraveen Active Member

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    Thanks for your comments, Agilent.

    Praveen.
     
  4. sudoku1

    sudoku1 Well-Known Member

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    http://stockcharts.com/school/doku....t_analysis:chart_patterns:double_top_reversal
     
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