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W.D. Gann & Double Top RCL Stock

W.D. Gann & Double Top RCL Stock is on our watch list. Before we short any stock our teem of stock traders wait for our proprietary algorithm to give a sell alert. W.D. Gann was a legendary trader who developed a system of technical analysis based on geometry, astrology, and ancient mathematics. His methods are still used by traders today, and he is considered one of the most influential figures in the history of technical analysis.

Gann was born in 1878 in rural Ohio. He showed an early interest in mathematics and geometry, and he began studying the stock market in his early twenties. He was a self-taught trader, and he developed his own unique system of analysis based on his knowledge of mathematics and the natural world.

Gann's system is based on the belief that the stock market is cyclical, and that it follows certain patterns that can be predicted. He used geometry to identify these patterns, and he also used astrology and ancient mathematics to help him make predictions.

Gann was a very successful trader, and he made a fortune in the stock market. He also wrote several books on his trading methods, including "How to Make Profits Trading in Commodities" and "45 Years in Wall Street."

Gann's methods are still used by traders today, and they are considered to be some of the most powerful tools available for technical analysis. However, it is important to note that Gann's methods are not without their critics. Some people believe that his methods are too complex and difficult to use, and that they are not based on sound scientific principles.

Despite the criticism, Gann's methods remain popular among many traders. They are seen as a way to gain an edge in the market, and they can be used to identify potential trading opportunities.

Here are some of the key concepts of Gann's trading method:

  • Geometric angles: Gann believed that the stock market follows certain geometric patterns, and he used these patterns to identify potential turning points.

  • Time cycles: Gann also believed that the stock market follows certain time cycles, and he used these cycles to predict future price movements.

  • Astrological principles: Gann believed that the position of the planets can influence the stock market, and he used astrological principles to make predictions.

  • Ancient mathematics: Gann also used ancient mathematics, such as the Fibonacci sequence, to make predictions.

Gann's trading method is complex and difficult to master, but it can be a powerful tool for traders who are willing to put in the time and effort to learn it.


A double top is a bearish reversal pattern that forms when the price of a security reaches a high price two consecutive times with a moderate decline between the two highs. It is confirmed once the asset's price falls below a support level equal to the low between the two prior highs.

The double top pattern is formed when there is a lot of buying pressure pushing the price of the security up to a high level. However, after reaching this high level, the buying pressure starts towane, and the price of the security starts to decline. The decline is usually moderate, and the price of the security eventually reaches a low level.

After reaching this low level, there is often a period of consolidation, where the price of the security trades in a narrow range. This consolidation period is often seen as a sign that the buyers are starting to get tired, and that the sellers are starting to gain control.

If the price of the security breaks below the low of the consolidation period, it is considered a confirmation of the double top pattern. This is a signal that the uptrend is over, and that the price of the security is likely to decline further.

Here are some of the factors that can increase the reliability of the double top pattern:

  • The pattern should be formed on a daily chart or higher time frame.

  • The two peaks should be roughly equal in height.

  • The decline between the two peaks should be moderate.

  • The low of the consolidation period should be below the low of the first peak.

If these factors are present, the double top pattern is more likely to be a reliable reversal pattern. However, it is important to remember that no pattern is 100% accurate, and traders should always use other factors to confirm their trading decisions.

Here are some of the things to look for when identifying a double top pattern:

  • The two peaks should be roughly equal in height. This is not always the case, but it is a more reliable pattern when the two peaks are similar in height.

  • The decline between the two peaks should be moderate. If the decline is too large, it could be a sign that the uptrend is over, and that the double top pattern is not a valid reversal pattern.

  • The low of the consolidation period should be below the low of the first peak. This is a key confirmation point for the double top pattern. If the low of the consolidation period is not below the low of the first peak, then the pattern is not valid.

If you see a double top pattern forming, it is important to watch the price action closely. If the price breaks below the low of the consolidation period, it is a signal that the uptrend is over, and that the price is likely to decline further.


RCL Stock Chart
RCL Stock Chart

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