Highest Quality Setups With The
Ultimate Double Top/Bottom Indicator
But you can boost the performance extremely by filtering the best signals with a top-down approach!
Many professional traders advocate a top-down approach. E.g. Dr. Alexander Elder has his triple screen (time frame) strategy.
And the reason why such an approach is so popular amongst professional traders is that you will have a much bigger edge over the market.
To use a top-down approach you need to wait for an edge on a bigger time frame and then trade a signal of a profitable trading system in direction of the edge of the bigger time frame.
As an effect of the top-down approach you will have less trades, but you will:
- have a higher winning percentage
- have bigger winning trades
- have less stress in your trading
- grow your account faster
In this blog I will post examples of double tops/bottoms on M30/H1 within MACD-divergences on H4 or at trend lines which are drawn on H4/D1. I will update this blog on a regular basis so please check this blog for new updates once per week!
The following 6 sketches are showing the 6 types of setups which will be the focus for this blog:
Blog Entry 26th March 2018
The pair USDCAD was in a bearish MACD divergence on H4 since 15th March after the price moved above the previous high which was formed at the beginning of March. On 16th the double top/bottom indicator and the scanner gave a double top signal on the time frame M30. This double top within the bearish divergence had to potential to give you a 6.5R winning trade (1R = risk of trade).
The following screenshot shows you the H4 time frame (the bigger picture with the additional edge):
The following screenshot shows you the time frame M30 on which the double top occurred. Such double tops have a high winning percentage and a big profit potential on a regular basis: