📉 Double Top Pattern: Spot Market Reversals Like a Pro 🕯️
Want to catch market tops before they dump? The Double Top is a classic, reliable pattern that signals a trend reversal — and it’s easier to spot than you think.
🔍 What is it?
A double top forms when price tests the same resistance twice but fails both times. Between the peaks, a neckline (support level) forms.
👇 When price breaks below that neckline — it’s confirmation that bears are in control.
🔥 Bearish Reversal Signal
This usually happens after a strong uptrend and hints that a downtrend could be coming fast.
🛠️ How to Trade It:
1️⃣ Wait for 2 clear peaks at similar levels.
2️⃣ Mark the neckline (lowest point between the tops).
3️⃣ Wait for a confirmed break below the neckline.
4️⃣ Enter short after confirmation.
5️⃣ Set your stop above the second top.
6️⃣ Target profit = height between top & neckline, projected downward.
📊 Bonus Tip:A volume spike during the breakdown adds strong confirmation.
✅ Simple. Visual. Effective.
Use it with discipline and patience — and it could become your go-to setup for spotting trend reversals before the crowd.