The Handbook of Technical Analysis + Test Bank_ The Practitioner\'s Comprehensive Guide to Technical Analysis ( PDFDrive )

Bar Chart Analysis

Dinapoli Double repo pattern

In Figure 7.33, we observe a bearish Double Repo reversal pattern. This pattern

was introduced by Joe DiNapoli in his book Trading with DiNapoli Levels. The

reader is advised to consult the original text for a detailed and complete discussion

of the Double Repo pattern. In short, the Double Repo pattern generates a sell

signal in an uptrend once it closes above and below a three‐day SMA twice. The

three‐day SMA is forward shifted by three days. According to Joe DiNapoli, the

patterns must be preceded by at least eight to ten days of bullish price action. The

topping formation should not exceed eight to ten bars. In Figure 7.33, we observe

a bearish double repo pattern preceding a rapid decline in the continuous daily

chart of sugar prices. The reverse applies in a downtrend.

Figure 7.32 False Support and Resistance Breakouts on the Daily Chart of Silver.

Courtesy of Stockcharts.com

Figure 7.33 DiNapoli’s Double Repo Pattern on the Continuous Daily Chart of

Sugar.

Courtesy of Stockcharts.com