Definition, Patterns, and Use in Trading
A double top is an extremely bearish technical reversal pattern that forms after an asset reaches a high price two consecutive times with a moderate decline between the two highs. It is confirmed once the asset's price falls below a support level equal to the low between the two prior highs.
KEY TAKEAWAYS
A double top is a bearish technical reversal pattern.
It is not as easy to spot as one would think because there needs to be a confirmation with a break below support.
KEY TAKEAWAYS
A double top is a bearish technical reversal pattern.
It is not as easy to spot as one would think because there needs to be a confirmation with a break below support.
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