I was looking at different FX charts last night when I found the Daily tf of the CHFJPY.I had a look at its chart to investigate the development of price action so far. What I found that jumped at me from the screen was this monster double top pattern.
The first top of the pattern formed on July 11, 2017 and what is interesting to see here is that the first top itself did form a tiny Head and should top pattern which I also labeled on the chart.
The second top of the double top pattern formed on February 2, 2018. The second top of the double top pattern by itself would be referred to as a V-top. The price close for the first top of the pattern was ~118.20 and that of the second was ~118.22 which is great because it is important to have the tops to finish close to each other and not have one of the tops be significantly higher than the other.
A price close of ~112.40 on March 7 2018 confirmed the double top pattern (i.e. close below the horizontal black line).
The safest best way to approach trading this is to wait for a bounce and then look to sell it if price attempts a breakout below the latest price low of ~110.38. In this case, a possible way to look for a target area to take profit is to project the difference in price of the blue arrow below the horizontal line and use that as a possible point to take profit.
