Double Top/Bottom
When price peaks after a rise, and the decline that follows leads to another rise in prices to form a second peak at or about the level of the first peak, a double peak is said to have formed.
Double top/bottom.
The double top/bottom patterns are called reversal patterns. In the case of the double top, there are 2 price peaks wherein price cannot exceed. Conversely, a double bottom creates lows wherein price cannot fall under.
Double Top/Bottom
Head and Shoulders
Triple Top/Bottom
For more information check out our lesson on chart patterns.
Ideal Double Top/Bottom
12.3. Continuation Patterns on the Foreign Exchange ...
Like the double top/bottom patterns, the head and shoulders pattern is also a reversal pattern. The head and shoulders pattern is quite well known probably because William Buckley popularized it in his publication, Investor’s Business Daily.
Technicians using charts search for archetypal price chart patterns, such as the well-known head and shoulders or double top/bottom reversal patterns, study technical indicators, moving averages, and look for forms such as lines of support, ...
Investors and traders usually familiarize themselves with chart patterns that have the tendency to form more than once such as the "double top/bottom" or "head and shoulders". They study these patterns in an effort to determine future price actions.
On our chart we don't have ideal double top/bottom patterns, but we can learn a few things from horizontal S/R levels: ...
Reversal Pattern: Patterns that hint at a reversal in the major trend. This group includes Head & Shoulders, Double Top/Bottoms, Wedges, etc...
Resistance: A distribution zone in the chart that is inhibitive to upside price action.
I then look for the stock to test the recent lows and double bottom or break through that level. That is where I employ the usage of tape reading to determine whether I should play the double top/bottom or whether I should play a breakout in the ...
that are generated from technical/statistical indicators such as moving averages, momentum, stochastic, and relative strength index or from chart patterns formation such as head and shoulders, trend lines, triangles, wedge, and double top/bottom.
 See also: Trend, Patterns, Pattern, Double top, Chart
  
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