What is the double top pattern?
The double top is a bearish reversal pattern. Price rallies to a level, pulls back, and fails at the same level a second time. The neckline is the low between the two peaks.
How to spot a double top
- 1Find two clear peaks at roughly the same price, with a dip between them.
- 2Draw the neckline across the low of that dip.
- 3The pattern completes when price closes below the neckline.
How does the double top form?
Price rallies to a level, pulls back, then returns and fails at roughly the same level. The low between the two peaks is the neckline.
How do you confirm a double top?
The two peaks should be close in price but separated in time. A few bars apart is a range, not a double top. The pattern only completes on a close below the neckline.
When does the double top fail?
Most double tops never complete. Price makes the second peak, drifts, and then makes a third, higher peak. The uptrend has simply paused.
No chart pattern works every time. The examples on this page were chosen because they show the pattern clearly, and in real markets patterns fail often.
Practice on real charts
3 real examples of the double top, cut off where the pattern completed. Make your call, then see what happened.
The shaded area is a double top. Where did price go next?
Double Top: common questions
Is the double top bullish or bearish?
The double top is bearish. The pattern only completes on a close below the neckline. Two peaks alone are just a range.
How do you spot a double top?
Find two clear peaks at roughly the same price, with a dip between them. Draw the neckline across the low of that dip. The pattern completes when price closes below the neckline.
What is the difference between the double top and the double bottom?
The double top: Price rallies to a level, pulls back, and fails at the same level a second time. The neckline is the low between the two peaks. The double bottom: Price falls to a level, bounces, and holds that same level on the retest. The neckline is the high between the two lows.
How reliable is the double top?
No chart pattern works every time. Most double tops never complete. Price makes the second peak, drifts, and then makes a third, higher peak. The uptrend has simply paused. That is why it helps to wait for confirmation and to practice on many real examples before relying on it.
How can I practice spotting the double top?
Use the real charts on this page: each one stops where the double top completed, so you can make a call and then see what happened. The free Chartle app mixes the double top in with 48 other patterns in short daily sessions.
Keep learning
- Chart pattern gameGuess where price goes next on real charts, all 49 patterns mixed.
- All 49 chart patternsEvery bullish and bearish pattern, with a printable cheat sheet.
- How to read candlestick chartsBodies, wicks and colors explained from the start.
- Cheat sheet PDFAll patterns on two printable pages.
