Hidden DTB Pattern

Developed at Definedge.

The hidden DTB pattern is a bullish breakout pattern. It indicates that the double top buy pattern is being reinitiated.

Below is a picture of the Hidden Double Top Buy pattern.

1. Double top buy pattern
2. The price reverses but doesn’t fall below the previous low
3. Price moves above previous double top buy level

After the double top buy breakout, the price retraced back and fell below the breakout level. It doesn’t form a bearish pattern and proves to be a retracement. The price moves back above the double top buy breakout level.

A reversal below the breakout level would cause many breakout traders to exit the trade. Some traders would also create short positions. The price moves upwards once again and goes above the double top buy level showing strength of the bullish trend. There is a double top buy pattern hidden within the formation.

Price reversed from the bottom of point 2 after the retracement, making it a strong bottom. That can serve as a strong reference point for bullish trades.

A hidden double top buy pattern can be used as an entry pattern. The stop-loss can be placed below the previous low or at the double bottom sell pattern.

This pattern can be plotted on the chart by adding it from the Add study menu in TradePoint & Patterns in RZone. The pattern is also available in the System Builder section. By combining this pattern with other patterns and indicators, you can create your own trading strategies. For any group of stocks and market segments, you can scan and backtest stocks based on those strategies.