Is a Double Tops Indices Chart Pattern Bullish or Bearish?

A double top stock indices chart pattern has an M shape and it occurs at a market top hence its name double top stock indices chart pattern and it signals a bearish stock indices price reversal in the stock indices trading market.

Once a double top stock indices chart pattern is confirmed then the stock indices trading market will be considered to be bearish, therefore a double top is bearish.

Double Tops Indices Chart Pattern

Double tops stock indices chart pattern is a reversal stock indices chart pattern that forms after an extended upward indices trend. As its name implies, this double tops stock indices chart pattern formation is made up of two consecutive peaks that are roughly equal, with a moderate trough in between.

This double tops stock indices chart pattern formation is considered complete once stock indices price makes the second peak and then penetrates the lowest point between the highs, called the neckline. The sell stock indices signal from this double tops stock indices chart pattern formation occurs when the stock indices trading market breaks below the neckline.

In Indices, this double tops stock indices chart pattern formation is used as a early warning signal that a bullish Indices trend is about to reverse. However, double tops stock indices chart pattern is only confirmed once the neckline is broken and the stock indices trading market moves below the neckline. Neckline is just another name for the last support level formed on the Indices chart.

Summary:

• Double tops stock indices chart pattern forms after an extended move upwards
• This double tops stock indices chart pattern formation indicates that there will be a reversal in the stock indices trading market
• We sell when stock indices price breaks below the neckline; see below for explanation.

Is a Double Tops Indices Chart Pattern Bullish or Bearish?