Double Top Definition

A double top is a chart pattern formed when price reaches a similar high twice before reversing lower, resembling the letter M.

What is a Double Top?

It is considered a bearish reversal pattern, suggesting buying pressure has weakened after two failed attempts to break higher.

Confirmation typically comes when price breaks below the support level between the two highs.

A stock rallying to $80 twice within a few weeks, then falling below the low between those peaks, forms a double top.

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