How do you define a double top/bottom?

https://elitetrader.com/et/threads/...t-right-here-baby.335635/page-18#post-5309309
Double Top

Double Top 9959 aud 5m.png
 
easymon1 said:
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If it reaches ~3960 again and bounces, that would be a double bottom. But knowing this skanky PA market environment, it will bounce up, then find support again to make it a triple bottom, then blow through it south to the past October lows. I mean, that is what the pessimists want, those bastuds.
 
Scataphagos said:
Yes. "Measure with a micrometer, mark with a paint brush, cut with an axe."

IOW... "Close" is close enough.
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Good word pics.
And some times hire a pro to mark the trees, not the boundary line trees usually.
And pro cutters+ stackers like IBKR/SCHW .Loggers like CAT,DEER machines+ chain saws, but those are bigger risk reward:D:D
 
BobbiDigital said:
I am curious how others define and use double tops/bottoms? There is something simple and powerful about them. Of course, in theory the market can't get through a limit order. But, very often the markets comes close to DT/DB's but may break the level by a tic or two, or not quite come back and touch the level and reverse.

My question is do you treat price turns within a couple tics (either short of a level or through the level) the same as price turns that occur directly at the same price? Are they inherently different?

BD
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WELL yes + its a common pattern for a double bottom to reverse within a couple of tics, say on weekly candle chart LOL:D:D.So another common pattern is making new highs in an uptrend. So plenty of triple tops, quad tops + more .....
Time frames vary, we're not in a bear market ,but bear of 2000-2002, QQQ, made double bottom on monthly charts, then went down again+ again, years .
Same way on uptrends, except SPY makes higher highs many months.
 
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