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Characteristics of the Double Top
1. Two peaks in the same area → The price attempts to break the
resistance twice, but fails.
2. Neckline → It forms at the minimum between
the two tops.
3. Decreasing volume at the second top → Indicates
weakness of buyers.
4. Confirmation of the pattern → Occurs when the price
breaks the neckline with volume.
5. Bearish projection → The drop is usually proportional to the
height of the pattern.
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