Double Tops and Bottoms

Double Tops and Bottoms
Double Top
A double top reversal pattern is formed with a large demand during the formation of the first top and a lack of demand with the second top.
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Chart Patterns IV: Double Tops and Bottoms
Chart Patterns IV: Double Tops and Bottoms ...

Double Tops and Bottoms in Currency Trading
Double tops and bottoms are the next most frequently seen reversal patterns which are widely observed by the forex market participants.

Double Tops and Bottoms happen if price rises to a known level of resistance before falling back but then return to the resistance level, while volume decreases all the time. A fall in price then ensues. A double bottom is an upside down double top.

Double tops and bottoms are the simplest point and figure patterns to identify and are the building blocks of all other patterns.
Double Top Breakout
Double Top Breakout ...

Double Tops and Bottoms
A double top occurs when prices rise to a resistance level on significant volume, retreat, and subsequently return to the resistance level on decreased volume. Prices then decline marking the beginning of a new down-trend.

Just as many traders look to bar charts for double tops and bottoms, head-and-shoulders, and technical indicators for reversal signals, so too can candlestick formations be looked upon for the same purpose.

Adding to the subject: RSI is also known to form patterns, such as wedges, triangles, double tops and bottoms, head and shoulders etc. Daily charts are perfect to watch these patterns.

The most popular Reversal Patterns include: head and shoulders, double tops and bottoms, triple tops and bottoms, and V-formations.
Interpretation & Signals
Head & Shoulders ...

Sometimes RSI forms chart formations like Head and Shoulders, triangles, double tops and bottoms etc., and these can be used to trade forex.

serve as a handy reference guide for your favorite chart patterns, including broadening tops, head-and-shoulders, rectangles, triangles, and triple tops and bottoms. You'll quickly learn about the Adam-and-Eve combinations of double tops and bottoms, ...

See also: Pattern, Tops and Bottoms, Double top, Trend, Trading