L-EarningCharts

Pipe Top Chart Pattern — How to Spot and Trade It

7/6/2026

chart-patterns
technical
bearish

Two adjacent tall spikes at a high (clearest on weekly charts) — a double stab that fails.

In plain words

Two flagpoles planted side by side at the summit — then everyone descends.

What the classic books say

The Pipe Top is a reversal pattern with reference reliability Medium and illustrative behaviour of ~70% follow-through on confirmation (the kind of statistics catalogued in Bulkowski's encyclopedic pattern studies and Murphy's technical-analysis classic). Best seen on weekly timeframes.

Level by level

Beginner

Two sharp pokes to the same heights, then a fall — the highs get rejected twice in a row.

Intermediate

Adjacent wide-range spikes with overlapping highs show urgent selling into strength.

Advanced

Weekly-chart pipes are the classic form; confirm on the break of the spikes' base.

Trade plan (educational template)

  • Entry: On the close below the lower of the two spike lows.
  • Stop-loss: Above the twin spikes.
  • Target: Spike height projected below the base.
  • Check the numbers with the Risk-Reward calculator before any entry.

Common beginner mistakes

  • Hunting pipes on noisy intraday charts

Practise it now

_Educational content only — not financial advice. Historical behaviour never guarantees future results._