What Are Double Tops Chart Patterns?

What is a Double Top Chart Pattern? A double top is a reversal pattern that occurs at the peak of an upward trend and can mark the beginning of a downward trend.

How Do I Identify a Double Top Chart Pattern?

A double top chart pattern takes place in four stages: 1. A higher new price is reached. 2. The trend gets to resistance and sells off to support. 3. The price sets in motion to return to resistance, but another sell off happens, and gets back to support 4. The price dips beneath support, setting a downward trend

What Does a Double Top Chart Pattern Symbolize?

A double top chart pattern can signify a tug of war between buyers and sellers. While buyers attemp to push the contract, sellers resist the upward trend. When once again the top of the pattern isn't broken, The buyers proceed to back off, allowing the sellers to dominate and send the trend downward.

Watch volume in this scenario, as it is likely to increase once the contract is below support. This support level may now become a new resistance level in the new trend.

Perceive that an identical chart pattern is the Big M, which has all the characteristics of a Double Top, but with more extreme moves.
by: GeorgeKissi