What is a Double Top?

A bearish reversal: two highs at a similar level (M shape). A break of the neckline below confirms the turn.

What is a Double Bottom?

A bullish reversal: two lows at a similar level (W shape). A break above the neckline confirms the turn up.

How big is the target?

Equal to the pattern height – the distance from the extremes to the neckline, projected from the breakout.

Double Top & Double Bottom

Reversal pattern · ~4 min read

Double Top and Double Bottom are among the simplest and most reliable reversal patterns. They form when price fails twice at a notable level.

Double Top (bearish)

Price reaches a high, pulls back and fails at roughly the same level on the second attempt – an "M". The low in between forms the neckline. A drop below it confirms the Double Top.

Double Bottom (bullish)

The mirror image – a "W": two lows at a similar level where sellers stall. A break above the neckline (the interim high) confirms the turn to the upside.

Price target

The pattern height (distance from the two extremes to the neckline) is projected from the breakout in the direction of the move.

What to watch

The two highs/lows should be close together (similar level).
Only the neckline break confirms it – before that it is just a candidate.
A clear prior trend increases reliability.

See it live on the chart

Currently detected formations of this type in the free pattern scanner.

Open the Pattern Scanner →