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Novice Traders' Notebook | AUG 2001
Novice Trader’s Notebook - The Double Top
Novice Trader’s Notebook — The Double Top Consider a security or a futures contract that is in an uptrend. The price reaches a point at which all of the buyers’ demand is met, and the sellers, whether traders taking profits or aggressive short sellers, enter the market and overwhelm the buyers. That price level will become known as major resistance, as the level establishes a point at which the supply is significantly greater than the demand (point A).
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