Double Top Pattern

The Double Top Pattern is formed when a stock’s price climbs to a resistance level once, bounces off and then climbs right back the same resistance level. Therefore, usually within a short time span, a stock hit two highs of nearly the same price. The Double Top Pattern is considered a reversal pattern.

double top

The above chart shows an example of a Double Top Pattern. You can see the two “tops” formed after the share price had a recent climb. By the stock hitting these two “tops” or peaks, it is confirming a strong resistant. Therefore, it is likely that the stock will have great difficulty going any higher. The direction it will likely go is down.

double top


Chart Patterns : Table of Contents

  1. What are Chart Patterns?
  2. Symmetrical Triangle
  3. Ascending Triangle
  4. Descending Triangle
  5. Double Top
  6. Double Bottom
  7. Head and Shoulders
  8. Reverse Head and Shoulders

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