Double Top Pattern
A bearish reversal pattern where price reaches a resistance level twice, forming an "M" shape, indicating potential trend reversal.
Quick Answer
A bearish reversal pattern where price reaches a resistance level twice, forming an "M" shape, indicating potential trend reversal.
What Is the Double Top Pattern?
The Double Top is a bearish reversal pattern that forms after an uptrend. Price reaches a high, pulls back, then returns to approximately the same high level before declining. The pattern resembles the letter "M" and is confirmed when price breaks below the support level (neckline) formed by the pullback.
How the Double Top Forms
- 1Price reaches a new high (first top)
- 2Price pulls back to form a support level
- 3Price rallies to approximately the same high (second top)
- 4Price breaks below the support/neckline
How to Confirm the Pattern
Price Target Calculation
Measure the height from the tops to the neckline, then project downward from the neckline break.
Best Timeframes for Double Top
How to Trade the Double Top
- →Identify trend reversals at resistance
- →Set bearish trade targets
- →Place stops above the double top
- →Confirm resistance levels
Common Mistakes to Avoid
Detect Double Top Automatically
VaultCharts automatically detects Double Top patterns on your charts. No manual analysis needed - the pattern is highlighted with entry zones and targets.