Part 52 | Double Top Pattern
In a double top, the price hits the same ceiling twice and falls—like knocking on a door twice and turning back. This is a warning signal of a possible decline. The pattern is confirmed when the neckline in the middle breaks.
How to trade:
1. Rejection at the ceiling for the second time = a sign to be cautious
2. Neckline breaks = consider going short or exiting
3. Target = below the neckline by the height of the pattern
Remember: a pattern indicates probability, not certainty—always use a stop-loss.
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In a double top, the price hits the same ceiling twice and falls—like knocking on a door twice and turning back. This is a warning signal of a possible decline. The pattern is confirmed when the neckline in the middle breaks.
How to trade:
1. Rejection at the ceiling for the second time = a sign to be cautious
2. Neckline breaks = consider going short or exiting
3. Target = below the neckline by the height of the pattern
Remember: a pattern indicates probability, not certainty—always use a stop-loss.
Follow 👇