Reversal Patterns · Bearish
Double Top
Two similar highs with a dip between them, then a break of the middle low.
Price fails to make a higher high on the second test. Confirmation is a close through the low between the two highs.
This is an example of how traders often plan the pattern. It is not a promise that price will reach the target.
Identification
- Two highs form at a similar price.
- A dip between them creates a neckline.
- Confirmation is a close below that neckline.
Market context
This is the bearish mirror of the double bottom.
Entry example
An example entry is the close through the neckline.
Stop-loss example
An example stop is above the higher of the two highs.
Target example
A common teaching method projects the pattern height down from the neckline. That measurement can fail.
Common mistakes
- Shorting the second high before the neckline breaks.
Candlestick and chart patterns are probabilistic observations, not guaranteed trading signals. This page does not report a win rate.