Is Double Tops Pattern Bullish or Bearish?

Example of Double Tops Chart Pattern

Double Tops Chart Pattern is a Bearish Chart Pattern - Double Tops Pattern is a Bearish Trade Signal Pattern

Summary:

• Double tops chart pattern forms after an extended move upward - upwards trend
• Double tops chart pattern signal indicates that there will be a reversal in trading market trend
• We sell when price breaks out below the neck line: as described on the example explained below.

Technical Analysis of Double Top Pattern?

Double tops pattern look like an M Shape pattern, the best reversal signal from the double top chart pattern is where the second top is lower than the first top as displayed below:

This means that the reversal signal can be confirmed by drawing a down-wards trendline as shown below. If a trader opens a sell trade using this double tops reversal signal the stop loss will be placed just above this down-wards trendline.

Technical Analysis of Double Tops Stock Chart Pattern - Example of Double Tops Chart Pattern