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Pipe Top

The Pipe Top has two consecutive sessions with similar long bodies at the top, signaling bearish reversal.

2-3 long-bodied candlesPipe Top: 2-3 long-bodied candles at top → Strong decline

Pattern Details

Category

reversal

Success Rate

61%

Average Move

-9%

Duration

2-5 sessions

Pattern Structure

Pattern Structure
Key components that define this chart pattern
  • 1
    Session 1: Long advancing candle
  • 2
    Session 2: Similar long advancing candle
  • 3
    Two candles nearly parallel

Trading Rules

Trading Rules
Essential rules for trading this pattern successfully
  • ✓
    Enter short position when price declines below two candles
  • ✓
    Volume should be high
  • ✓
    Target = Length of the pipe
  • ✓
    Stop loss above pipe top
Trading Tips
  • Two candles should be similar size
  • Rare pattern
  • Confirm with following declining session

Statistics

Breakout Statistics
Bullish Breakout39%
Bearish Breakout61%
Performance Metrics
Average Rise+4%
Average Decline-9%
Pullback Rate18%