Double top pattern: S signal potential trend reversals with two

Double top patterns signal potential trend reversals with two highs near the same level. Indicators with divergence signals, such as the RSI, can often hint at the presence of a double top . Within long bull markets, large double tops can often signal the start of a bear market. What is a double top pattern? A double top pattern is a bearish reversal pattern in technical analysis that signals a potential shift from an uptrend to a downtrend. It features two peaks at roughly the same price level, separated by a pullback that forms a support area known as the neckline. In this blog post, we’ll learn about the double Top (M) chart pattern , how to identify it, trading strategies, examples, and important tips to consider while trading with it. Double top patterns are indicators of a long-term trend reversal. The bulls try to push the price twice before giving in to the bears. Double tops are popular patterns found on all time frames of charts. Those two peaks form a key resistance level, whereas the middle trough can be supported.