Patterns › Double bottom vs Double top
Look-alikes
Double bottom vs Double top
They look alike, so beginners mix them up. Here is what each one means, and how often each one worked on real charts.
Double bottom
Two lows at the same level, then a break above the peak between them.
A double bottom forms when price falls to a low, bounces, falls back to about the same low, and bounces again. The high point between the two lows is called the neckline. The pattern is only complete when price closes above the neckline. It shows sellers failed twice at the same floor, and buyers finally pushed past the middle hill.
Calling a double bottom before price closes above the neckline.
Double top
Two peaks at the same height, then a break below the dip between them.
A double top forms when price rises to a peak, dips, rises back to about the same peak, and turns down again. The low point between the two peaks is called the neckline. The pattern is only complete when price closes below the neckline. It shows buyers failed twice at the same ceiling, and sellers finally pushed below the middle dip.
Calling a double top before price closes below the neckline.
Real odds side by side
| Pattern | Found | Target first | Stop first | Went nowhere |
|---|---|---|---|---|
| Double bottom | 4,672 | 37% | 57% | 6% |
| Double top | 4,641 | 38% | 55% | 7% |
Counted by the Trading Class research engine on real past candles: entry at the signal candle's close, target 1.5 × ATR(14), stop 1 × ATR(14), 12 candles to decide, a candle that touches both counts as the stop. How we count. Past data, not a forecast and not advice.