JoymistaWhat Are Double Top and Double Bottom Patterns?
A double top is a bearish reversal pattern: two similar peaks with a dip between them, confirmed when price breaks that dip. A double bottom is the opposite.
Explained
The pattern shows price failing twice to get past a level. The target is usually estimated by measuring the height from the peaks to the dip between them and projecting it from the break.
Example
Example with made-up numbersTwo peaks near 150 with a dip at 140, a height of 10. After 140 breaks, the estimated target is 140 − 10 = 130.
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Related terms
- Head and ShouldersHead and shoulders is a reversal pattern: three peaks with the middle one highest (the…
- Support and ResistanceSupport is a price zone where falls stopped before because buyers took over; resistance…
- BreakoutA breakout is price closing clearly outside a support or resistance zone; a false…
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Open in JoymistaEducational content, not investment advice.