A double top is a bearish reversal pattern — price makes two highs near the same level, then falls. It appears in stocks, forex and crypto alike. Here is how to spot, confirm and trade it.
Advertisement
What It Looks Like
Price rallies to a high, pulls back, rallies again to roughly the same high, then breaks down. The line between the two lows is 'neckline' support.
Confirmation Matters
The pattern only matters when the neckline breaks with volume/conviction. Without the break, it is just a range.
How to Trade It
- Enter short on the neckline break (or a retest).
- Stop above the second high.
- Target a move roughly equal to the pattern's height.
Risks
False breaks are common; pairs may fail on retests. Confirm and size risk small.
FAQ
Is a double top always bearish?
Only when confirmed by a neckline break; otherwise it is range-bound price.
Does it work in crypto?
Yes — with higher volatility, confirm with volume and structure.
Related: Break & Retest and Trading Signals.