The Double Top pattern forms when price creates two peaks at approximately the same level. This is a strong bearish reversal pattern signaling the end of an uptrend.
Pattern Details
Category
reversal
Success Rate
78%
Average Move
-15%
Duration
2-3 weeks
Pattern Structure
Pattern Structure
Key components that define this chart pattern
1
First Peak: Price reaches high and declines
2
Valley (Neckline): Temporary support level
3
Second Peak: Price returns to previous high level and declines
Trading Rules
Trading Rules
Essential rules for trading this pattern successfully
✓
Enter short position when price breaks below valley