Blogs

What Is a Double Top? A Double Top is a bearish reversal pattern that appears after an uptrend.It forms when the price reaches a resistance level twice, fails to break above it, and then starts to fall.It shows that buyers tried to push the price up twice, but sellers took control both times — indicating a potential trend change from bullish to bearish. How to Identify a Double Top 1. First Top – Price rallies to a peak and then pulls back. 2. Second Top – Price rises again to roughly the same level, but fails to break higher. 3. Neckline – The lowest point between the two tops. 4. Breakdown – When the price breaks below the neckline, the reversal is confirmed. In the Chart Above: The price made two strong pushes upward near 26,080 – 26,100 (forming the two tops).Both times, it failed to break higher — showing seller strength.Once the neckline (around 25,920) broke, the downtrend accelerated sharply.You can see a clear fall to 25,720, confirming the bearish reversal. Pro Tip: Traders often enter short positions after a confirmed neckline breakdown.For safer entries:Wait for a retest of the neckline after the breakdown.Use a stop-loss above the second top.Set your target equal to the height of the pattern (Top to Neckline distance projected downward).

Blogs

The Double Top Pattern Explained (With Real Chart Example)

Contact Info