Glossary › double top

Trading glossary · patterns

double top

An M-shaped chart pattern: price rises to about the same high twice, then falls below the dip between them.

The fuller meaning

A bearish reversal pattern: two peaks at roughly the same level with a dip between, confirmed only by a close below that middle low, the neckline. Traders estimate a rough target by measuring from the peaks to the neckline and projecting it down; a close back above the peaks proves the idea wrong.

double top.

Related words

apex · ascending triangle · bear flag · bull flag · busted pattern · chart pattern · continuation · continuation pattern · converging lines · cup and handle