Chart patterns
Double top
Definition
Two peaks at about the same price after an uptrend, with a pullback low between them. Bearish only after a close below that low.
Example
Suppose a stock in an uptrend peaks at $65.00, pulls back to $60.00, then rallies to $65.20 and turns down again. Until a candle closes below $60.00, this is just two tests of resistance, and the uptrend can still resume. A close at $59.40 confirms the double top, and the common measured target projects the $5 height down from $60.00 to $55.00.
Hypothetical numbers, for illustration only.
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