April 18, 2024

Double Top Pattern

The ‘Double Top Pattern’ is a technical analysis tool commonly used by forex and stock traders. It indicates the presence of a strong inverted trend, and is seen when price reaches and fails to break previous highs. The pattern consists of a peak, followed by a retracement or consolidation phase, followed by another peak at the same level as the first peak before price drops downward. This constitutes a ‘double top’ pattern and may be used to suggest that a bearish trend is imminent. Traders looking to capitalise on the potential directional shift in the market may use the ‘Double Top Pattern’ to inform their trading decisions.

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