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. The double top is a classic technical analysis pattern that often signals a potential trend reversal after a strong uptrend. It can be identified across all timeframes and asset classes. However, interpreting it correctly requires precision. 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. The double top is a reversal pattern which typically occurs after an extended move up. It signals that the market is unable to break through a key resistance level.
