Chart patterns
Double top
A double top is a bearish reversal pattern: two peaks at the same level that price fails to break, followed by a downside break.
A double top is a bearish reversal pattern: two peaks at the same level that price fails to break, followed by a downside break.
Price rises, hits a level (first peak), pulls back, rises to test the same level (second peak) but fails to break it. This double failure shows buyers running out of steam.
The pattern confirms when price breaks below the trough between the two peaks. The peak level then becomes resistance.
Price touches $100 twice without breaking it, with a trough at $90 in between. A break below $90 confirms the double top.
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