Why you need a trading plan?

A trading plan should have complete sets of rules that cover every aspect of any trader's trading.
• What instrument (stock, forex, options, future, CFD etc) you want to trade and why? I trade stock and forex not because I like stock or forex market I have definite reasons to trade those, you need to know why you are trading individual stock not index?
• Which market (NYSE, NASDAQ etc) you want to trade?
• What is best time for you to trade why? (Suppose for forex London open is the best time to trade)
• How you will select a stock or a currency pair that will give you the best result. (I have 12 specific rules to select a stock that helps me a lot to avoid over trading)
• The maximum percentage you will risk on each trade. This is most important for new trader to learn risk management. I follow three golden rules to manage my risk.
• How many lots/share you will trade per trade (position size).I always follow two different rules to know my position size.
• Which time frames you will look at. Time frame is very important aspect to any trading. I follow 5 and 15 minutes chart for equity .Any good set up will appear in any time frame but the point is exit will be different in different time frame.
• A trading plan will give you clear-cut entry strategy, where should you enter and why .My trading plan has eight specific entry strategies.I think exit is the key to a successful trading plan. An exit strategy will show you where to exit and why. I use Three different exit strategies.

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Double top

A double top is a reversal pattern .This pattern occurs following an uptrend. It is named for the two of peaks which form when price is unable to make a new high. Traders get the sell or short signal when price breaks below the reaction low which formed between the two peaks.
The characteristics, volume pattern and measuring rules are similar to that of the head and shoulders except for there being only two peaks.
Ideally, the double top would have two peaks at about the same price level with volume being heavier on the first peak and lighter on the second.

2B pattern

When market makes new high or new low, there is always a pullback .After the pullback the market will retest the previous high/low. If the market fails to hold the new high/low, it signals a potential trend reversal. Trades orders are entered to sell the low of the bar trying to breakout or buy the high of the bar trying to breakdown. Target: The target is usually the ‘swing low’ prior to the new high or ‘swing high’ prior to the new low. Stop: Protect your ‘long’ trade entry by placing a ‘stop’ below the recent low and protect the ‘short’ trade entry by placing a ‘stop’ above the recent high.

How to find and confirm a trend?

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Time frame