Double Top Patterns Ford Motor Co(F)

Shares of Ford Motor have reached the target derivation

 Double Top pattern is one part of a reversal pattern which is derived from the Triple Top. Pattern formation in the Double Top formation should also be initiated by the previous uptrend, then formed two peaks (A and C), which ideally has the same height level as shown in the picture beside this. This makes the potential for the formation of patterns Tops Doube, but it remains unclear whether the trend will turn sideway or down trend. Although further confirmation is required, trendline penetration could be an early sign for more intensive monitoring, especially if the price declines are accompanied by volume increases. Double Top formation is easily recognizable at a glance looks like the letter M.

As a validation of the final confirmation of this pattern is if the closing price was below the horizontal line drawn support from the lowest point in the valley between two peaks (B). Then the target can be measured from the break point bearish based on the projected vertical distance between the "line of resistance with the lowest point in valley B". Double Top is mentioned as one of the most common pattern and having a failure rate is quite low, around 17 percent. Statistics show 341 of the 454 signals a reversal formations that form patterns, and the other 113 is a signal consolidation. Average time to establish this pattern is about one and a half months to three months on the daily charts. In addition, the Double Top pattern can also be found on the weekly charts, but its formation would take longer, sometimes over a year or even several years.

In the image above Ford's stock price has already reached the target and it seems the price will come back stronger, but the trend is still bearish in the meantime.When prices broke through the $ 11.8 the price is big opportunity will rebound sharply upward and the point of entry to buy sahm clearly must exceed $ 11.8 as an example of $ 11.85 to $ 11.90, and for cutloss 7-8 percent always when the price was below $ 11.8 approx $ 10,856.