Major reversals Short
Micro double top after a climax
Close retest of a buy-climax high. The second high attracts less buying and is rejected.
Read the sequence.
01 / OBSERVE → DECIDE
- ContextClose retest of a buy-climax high
- PressureThe second high attracts less buying and is rejected
- SetupClose retest of a buy-climax high. Require rejection or acceptance at the marked structure.
- DecisionBear trigger after the small double top
The decision map
02 / QUICK REFERENCE- Location
- Close retest of a buy-climax high.
- Evidence
- The second high attracts less buying and is rejected.
- Trigger
- Bear trigger after the small double top.
- Invalidation
- Failure of the second-high structure.
- First objective
- Nearby support or EMA area.
- Pass when
- Treating a visual double top as confirmation by itself.
03 / THE FULL ARGUMENT
Thesis & participant logic
Supplied study draft · adapted Brooks-style prose, not a quotation from Al Brooks
The market experienced a buy climax and pulled back. Bulls retested the high but failed to resume the trend, creating a micro double top. I will sell below the bear trigger if buying pressure has weakened. My thesis is wrong above the second high. I will target the EMA or next support.
04 / FROM IDEA TO A PLAN
Manage the thesis, not the need to be right.
Before entry
Write the structural invalidation and first realistic objective. Size to the loss you have already accepted, including costs and possible slippage. If the stop is unaffordable, reduce size or pass.
After entry
Reassess follow-through against the evidence above. Do not widen the stop or add because price “has gone too far.” A bounce to your average entry is not a market thesis.
At the objective
Nearby support or EMA area. Decide ahead of time whether to exit or retain a defined remainder. Continue only while structure and follow-through support the trade.
During review
Record the entry-time chart, planned risk, maximum adverse excursion, actual exit, and whether the thesis was invalidated. Judge the decision separately from the outcome.