Double Tap, the double top indicator MT4 that fires when the neck gives way
When price attacks the same ceiling twice and fails twice, the traders who were long start to doubt. Their stops sit under the valley between both attempts, and the moment that valley breaks, the exit turns into a stampede. Double Tap is a double top indicator MT4 that finds those two attempts, draws the neck between them and fires on the candle that closes through it.
The arrow does not repaint, does not move and does not disappear. It needs a closed candle, and once it prints it stays exactly where it printed.
Click the image to enlarge
Real chart, EURUSD on M1. Two attempts die within a pip of each other, the tool draws the neck under them, and the next candle closes below it. The sell arrow prints at 1.14538 with the stop above both peaks at 1.14593, a risk of 6 pips. The euro then walked down to 1.14408 without looking back, a move of 13 pips on a one minute chart. Every price comes from the exact candle history of that chart.
Why two failures say more than one
A single rejection proves that somebody sold there. Two rejections at the same price prove that somebody is still selling there, and that the buyers have already spent their ammunition twice. That is why the double top and the double bottom survived a century of technical analysis while fancier patterns came and went.
However, the pattern only pays when the neck breaks. Therefore this tool never fires at the second peak. Instead, it waits for the close beyond the valley, which is the moment the trapped side has to run.
What this double top indicator MT4 checks before it fires
- Two confirmed peaks, each one with real candles on both sides.
- The same price, within a tolerance you can set in average candle sizes.
- Enough room between them, so two candles in a row never count as a pattern.
- The neck. The extreme of the valley between both peaks, drawn and labelled on the chart.
- The break. A candle that closes beyond the neck, in the right colour.
Besides, the same pattern upside down gives the buy signals, so double bottoms are covered by the same engine.
How to trade the signals
- Enter on the close of the arrow candle. The neck has already given way.
- Stop beyond both peaks, because if price goes back up there the pattern simply failed.
- Target the height of the pattern, measured from the peaks to the neck and projected down.
- Respect the context. Also, a double top under a falling trend is worth more than one in the middle of a range.
Markets and timeframes
| EURUSD | M1, the example above |
| GBPUSD | M30 |
| All major pairs and gold | M1 to H4, the same rules |
The pattern is the same on every chart, so the timeframe only changes the size of the trade. In practice, M1 and M5 give the scalping version, while M30 and H1 give the swings.
What is inside
- The neck drawn from the first peak to the break, labelled NECK.
- Dots on the two matched peaks, so the pattern is visible before the break.
- Arrows on closed candles only. They do not repaint, move or disappear.
- Editable peak strength, price tolerance and distance between the peaks.
- Popup, sound, push and email alerts, each one switchable.
- Premium dark chart theme, applied on attach and restored on remove.
Besides, it reads price only, so any broker and any account works. If you want robots that trade by themselves, browse our automated robots, and the rest of the manual set is in our chart tools for traders.
Questions about this double top indicator MT4
Does it repaint? No. Both peaks are confirmed by candles that already closed, and the break needs a closed candle too.
Does it also find double bottoms? Yes. The same rules run upside down and give the buy arrows.
My peaks look equal but nothing fired. Then the distance between them was outside the limits, or the neck had already been broken before.
Do you have the other version? Yes. This is the MetaTrader 4 build, and Double Tap for MT5 finds the same patterns on MetaTrader 4.
Trading involves risk. Signals are information, not advice, so try any new tool on a demo account first and only trade money you can afford to lose.
