Double Top Chart Pattern — How to Spot and Trade It
7/6/2026
Two peaks at a similar level — buyers fail twice at resistance.
In plain words
Bumping your head on the same ceiling twice and giving up.
What the classic books say
The Double Top is a reversal pattern with reference reliability High and illustrative behaviour of ~65-70% after neckline break (the kind of statistics catalogued in Bulkowski's encyclopedic pattern studies and Murphy's technical-analysis classic). Reliable after an extended uptrend.
Level by level
Beginner
Price tried the same high twice and failed both times. Sellers defend it.
Intermediate
A double rejection at resistance signals strong overhead supply and a likely top.
Advanced
Confirmed only on a break of the intervening trough (the neckline).
Trade plan (educational template)
- Entry: On a close below the trough between the peaks.
- Stop-loss: Above the second peak.
- Target: Peak-to-trough height projected down.
- Check the numbers with the Risk-Reward calculator before any entry.
Common beginner mistakes
- Shorting at the second peak before confirmation
Practise it now
_Educational content only — not financial advice. Historical behaviour never guarantees future results._
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