Visual Guide to Chart Patterns

Double Tops

Double tops are dual price mountains that peak near the same price. They are the same as double bottoms except flipped upside down. In this chapter, we will discuss what to look for when searching for double tops.

Exhibit 14.1 shows two examples of double tops on the daily scale. At F, price begins the steep march up the sides of the double top. It peaks at A, withdraws to G, and then forms another peak, B, at a price similar to A.

When price closes below G, it confirms the twin peaks as a valid double top.

KEY POINT:

Double tops are bearish reversals of an uptrend formed by twin peaks near the same price.

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