Double top pattern: What Is a Double Top

What Is a Double Top? A double top is a bearish technical reversal pattern signaling a potential trend change after an asset hits a resistance level twice without breaking through, indicating a... What is the Double Top Pattern ? When Does the Double Top Pattern Occur? The Double Top Pattern is a well-known bearish reversal pattern used in technical analysis to signal a potential trend reversal from bullish to bearish. Double top patterns signal potential trend reversals with two highs near the same level. Indicators with divergence signals, such as the RSI, can often hint at the presence of a double top . Within long bull markets, large double tops can often signal the start of a bear market. From several chart patterns, the Double Top Pattern plays a vital role. This post discusses the definition, methods to identify the pattern, and its advantages & disadvantages.