How long do topping patterns last? And what should I look for?
Well, the most truthful answer to this question is this: A LONG TIME, and by a long time, I mean months, years, decades. Have you ever heard of the saying ‘the larger the base, the higher in space.’? Well, this saying is true, but it is also applicable to the inverse scenario, that being the larger the base, the larger the drop.
To determine if something is a topping pattern or not, the most obvious answer is the answer to this question ‘is it going down?’. If this is true, well then it was a topping pattern, that was simple. However, I assume you mean ‘what can you spot to determine whether or not something is topping?’. This question is a tad more difficult, but I will do my best to answer the question. I usually look for this following in determining whether or not something is topping:
- Choppy price action
- Large red or green candles, volatility
- Flat to downsloping MAs
- Relative Weakness
- A large base
If some or all of these above criteria is true, you likely have a topping pattern on your hands and should trade accordingly.
So to reiterate all of this, topping patterns can last a long time, depending on the size of the base (price consolidation). Also, Topping usually happens in the form of choppy price action. If both of these two things happen at the same time, watch out.