Double top or just a pause? Let the neckline decide

Two peaks at the same price. Top, or just a pause?

Pause the video and pick. Then watch.

This is silver on the four-hour chart. It peaked at 67.32, pulled back, then pushed to 67.54.

Two peaks, almost level. A lot of traders call it a double top right here.

But two peaks alone prove nothing. You need the neckline.

The neckline is the lowest point between the peaks. Here, 64.55.

Rule one: a candle closes below the neckline. Now it's a top.

Rule two: a candle closes above both peaks. It was just a pause. The uptrend continues.

At this candle, neither has happened. So the answer is: not yet. Wait for the close.

Here's what happened. Three candles later, silver closed at 64.47, below the neckline.

That made it a top. Within a week, silver dropped to 60.28.

If you were long, that close below the neckline was your signal to get out.

And if it had closed above both peaks instead, the uptrend would have been back on.

Save this. Two equal peaks: no signal yet. Close below the neckline: top. Close above the peaks: pause.

Your turn. Two equal peaks, price sitting just above the neckline. Top, pause, or wait? Comment below.

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