Double Top
ChartBearishReversalReliability:
Two peaks at roughly the same resistance level separated by a trough; a break below that trough marks a bearish reversal.
Description
It looks like an M. The second peak fails to exceed the first; the horizontal line through the middle trough is the neckline.
Market psychology
Two failed attempts to break resistance show buying pressure is spent; late buyers get trapped as price turns down.
How to trade
The target is often the pattern height projected down from the neckline; wait for a close below the middle trough.
Confirmation
A close below the neckline after the second peak fails; volume is often lower on the second peak.
Also known as: M top, Double peak
Educational content only — not financial advice. Cryptorua reads public market data and never places orders.