Reversal pattern · bearish bias
Double Top pattern
A double top forms when price rallies to a high, pulls back, rallies to roughly the same high again and fails. The low between the two peaks is the line that confirms the reversal when it breaks.
How to identify a double top
- An uptrend into a first peak.
- A meaningful pullback, not a one-candle dip.
- A second rally that stalls close to the first peak.
- The swing low between the peaks marks the confirmation level.
What confirms it
A close below the swing low between the two peaks confirms the pattern. Before that, it is only a possible double top.
What invalidates it
A clean close above both peaks invalidates it and often turns the area into a breakout instead.
How traders project a target
Take the height from the peaks to the confirmation low and project it downward from the break.
Common mistakes
- Labelling every pair of similar highs a double top before the middle low breaks.
- Expecting the two peaks to match exactly. A small overshoot on the second peak is common.
- Using peaks that are only a few candles apart, which usually produces a minor pause rather than a reversal.
Where it appears
Look for it after a sustained advance. The more time between the two peaks, the more significant the pattern tends to be.
Frequently asked questions
How far apart should the two tops be?
There is no fixed rule, but the pullback between them should be visible and meaningful on the timeframe you are using. Peaks a handful of candles apart are rarely significant.
Is a double top the same as resistance?
The two peaks do mark resistance, but a double top is specifically a reversal pattern. It needs a prior uptrend and a break of the middle low to be complete.
What happens if the second top goes slightly higher?
A marginal new high that quickly fails can still form a double top, sometimes called a false break. A sustained close above both peaks is different and invalidates it.
Related chart patterns
Educational content only, not financial advice. Chart patterns describe probabilities, not certainties, and every pattern can fail. See our disclaimer.