Double Top
Two consecutive peaks at roughly the same price level, separated by a pullback, signalling exhaustion and potential trend reversal downward.
A Double Top forms when price reaches a resistance zone, retreats, rallies back to the same level, and fails again. The two peaks sit at approximately the same height, forming an "M" shape.
The pattern is confirmed when price closes below the swing low between the two peaks (the "valley"). Measured target: valley-to-peaks distance projected down from the valley.
- Volume on the second peak is usually lower than on the first — conviction is fading.
- Identical peak highs are not required; a marginal second high that still reverses is valid.
Related Terms
Double Bottom
Two consecutive troughs at approximately the same price level, forming a "W" shape, signalling support and potential upside reversal.
BeginnerHead and Shoulders
A three-peak reversal pattern where the middle peak (head) is tallest, flanked by two shorter peaks (shoulders), signalling a trend top.
BeginnerIsland Reversal
A price cluster isolated by two gaps on either side — a sharp reversal signal where the gap-up and gap-down create a gap island.
IntermediateNeckline
The support or resistance level connecting the lows (or highs) of a reversal pattern — the line whose break confirms the pattern.
BeginnerReversal Pattern
Any pattern that signals a change in the prevailing trend direction — Head and Shoulders, Double Tops/Bottoms, and wedges at extremes are classic examples.
BeginnerTriple Top
Three failed tests of the same resistance level, indicating sellers are firmly in control and a bearish breakdown is likely.
Beginner