WLT
2022-03-20

The Difference Between a Double Bottom and a Double Top

Double top patterns are the opposite of double top patterns. A double top pattern is formed from two consecutive rounding tops. The first rounding top forms an upside-down U pattern. Rounding tops can often be an indicator for a bearish reversal as they often occur after an extended bullish rally. Double tops will have similar inferences. If a double top occurs, the second rounded top will usually be slightly below the first rounded tops peak indicating resistance and exhaustion. Double tops can be rare occurrences with their formation often indicating that investors are seeking to obtain final profits from a bullish trend. Double tops often lead to a bearish reversal in which traders can profit from selling the stock on a downtrend.

Technical Analysis
Here is the place for you to discuss & learn about technical analysis.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

  • CharlesBaker
    2022-03-21
    CharlesBaker
    From a large number of historical K-line charts, there are many subsequent rebounds after the emergence of the double top. Although it can not stop the downward trend, it is still a good short-term profit opportunity.
  • PSG2010
    2022-03-21
    PSG2010
    Before the bear market, the second of the double tops, also known as the escape top, was an opportunity for many funds to escape.
  • MortimerDodd
    2022-03-21
    MortimerDodd
    Your post was useful and I learned new technical indicators again.
  • EvanHolt
    2022-03-21
    EvanHolt
    It would be even better if you could also use some stocks as an example.
  • HilaryWilde
    2022-03-21
    HilaryWilde
    Does the second top of a double top have to be lower than the first?
  • Maria_yy
    2022-03-20
    Maria_yy
    Sometimes big money will deliberately create such graphics to deceive people.
Leave a comment