๐ A double top is a bearish technical reversal pattern.
๐ It is not as easy to spot as one would think because there needs to be a confirmation with a break below support.
๐ In the chart above you can see that two tops were formed after a strong move up.
๐ Notice how the second top was not able to break the high of the first top.
๐ This is a strong sign that a reversal will occur because it's telling us that the buying pressure is just about to finish.
๐ With the double top, we would place our entry order below the neckline because we are expecting a reversal of the uptrend.
