Ⓜ️Double Top & Bottom
Reversal patterns
Last updated
Reversal patterns
Last updated
The double top or bottom are reversal patterns, signaling areas where the market has made two unsuccessful attempts to break through a support or resistance level.
A double top often looks like the letter M and is an initial push up to a resistance level followed by a second failed attempt, resulting in a trend reversal.
A double bottom, on the other hand, looks like the letter W and occurs when the price tries to push through a support level, is denied, and makes a second unsuccessful attempt to breach the support level. This often results in a trend reversal, as shown in the figure below.
