Chart-in-Focus: No Reversal; Looks Like Just A Pause

Welcome to the March edition of “Chart-in-Focus”, where we delve into the intricate dynamics of market patterns and trends. In this issue, our focus is on the double top formation, a significant bearish reversal pattern known for its potential to signal impending downward movements in price trajectories.

Despite its reputation for heralding price downturns, it is essential to acknowledge that the outcome of such formations can sometimes defy conventional rules as they are subject to price confirmation. Moreover, not only this, but no pattern should ever be traded in isolation and one should also look at a bigger picture on the charts. Indeed, there are instances where these patterns, instead of precipitating a downward trend, may disrupt the ongoing upward momentum.