What is a Double Top Chart Pattern? A double top is a retrogressive pattern that happenss at the top of an ascending trend and can represent the introduction of a declining trend.

How Can I Pinpoint a Double Top Chart Pattern?

A double top chart pattern takes place in four stages: 1. A higher new price is reached. 2. The trend gets to resistance and sells off to support. 3. The price sets in motion to return to resistance, but another sell off happens, and gets back to support 4. The price dips beneath support, setting a downward trend

What Does a Double Top Chart Pattern Symbolize?

A double top chart pattern can point to a tug of war between buyers and sellers. While buyers try to push the contract, sellers resist the upward trend. When once again the top of the pattern isn’t broken, The buyers begin to back off, leading the sellers to dominate and send the trend downward.

Watch volume in this scenario, as it is likely to increase once the contract is below support. This support level may now become a new resistance level in the new trend.

Perceive that an identical chart pattern is the Big M, which has all the characteristics of a Double Top, but with more extreme moves.