Double- Top Lower High Intraday Pattern.
There are many technical chart pattern known to stock market pattern. Cup and Handle, double top, double bottom, head and shoulders, flat tops, Knees and toes (*just kidding* that does not exist), to name a few. Among these patterns, my favorite is the double top (for short trades*) and double bottom (for long trades*). Our topic here is focused on double top pattern signal for intraday short trade.
Double top pattern signals a price exhaustion, whereas, a stock price prints a similar high price point twice and then pull back from that pivot level.
TSLA is a prime sample for this double top pattern intraday. See chart illustration and focus on the encircled double top price point, chart is specified intraday on 5 minutes interval channel.
TSLA 1st printed high of day at $356.2, then slight pullback from there, then attempted to test the high pivot again, on the 2nd attempt, it has significantly faded and noticeable rejection of 356 area, this time the second high point is 355.80, at this point it has established a 'lower double top' price pattern, notice that upon 355.8 print the 5 minutes candle has printed red,making it even more solid conformity of the double top pattern or short signal. TSLA has pulled back $3 from the second 355.80 doubletop price point. This set-up is sample of datrade short from $355.8 to $353 cover point, on or about $2-3 profit on short scalp.