Double Top and Double Bottom

The easiest reversal pattern to recognize.

Double top

• Two highs at a similar price level, separated by one low (the neckline).
• Appears after an uptrend. Shows that buyers failed to make a higher high.
• Trigger: price breaks and closes below the neckline.
• Stop: above the second high.
• Target: the height of the pattern (high → neckline) projected downward from the neckline.

Double bottom

The mirror image: two similar lows after a downtrend, triggered when price breaks above the neckline.

Key points

• The highs/lows do not have to be exactly equal — a close range is enough.
• Confirm with a close through the neckline, not just a touch.