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Double Top Pattern: How to Spot Market Reversals 🕯
Looking for a simple, proven way to catch market tops before they dump? The double top pattern is one of the most reliable signals that a trend is about to reverse.
👉 A double top forms when price tries and fails to break the same resistance level twice. The first push up gets rejected, price pulls back, and then a second attempt fails again — forming two peaks. Between them is a neckline (support level). If price breaks below that neckline, the pattern is confirmed.
This is a bearish reversal signal. It usually appears after an extended uptrend and marks the potential beginning of a downtrend 🔽
Here’s how to trade it:
1️⃣Wait for the price to clearly form two tops near the same level.
2️⃣Identify the neckline — the lowest point between the two peaks.
3️⃣Wait for a confirmed break below the neckline before entering a short.
4️⃣Set your stop above the second top.
5️⃣Your profit target = the distance between the tops and the neckline, projected downward.
Extra confirmation: a spike in volume on the breakdown helps validate the move.
🤔 It’s a simple, visual pattern — but if you use it with discipline and wait for confirmation, it can become one of your strongest tools in spotting trend reversals.
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