What is a 'Double Top'

A double top is a term used in technical analysis to describe the rise of a stock, a drop, another rise to the same level as the original rise, and finally another drop.

Double Top

BREAKING DOWN 'Double Top'

The double top looks like the letter "M". The twice touched high is considered a resistance level.

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RELATED FAQS
  1. What does a double top tell a trader about the overall trend?

    Find out what technical chartists mean by a double top trend in a security's price movements, and learn why double tops are ... Read Answer >>
  2. How effective are double tops in spotting a change in the overall trend?

    Learn about the double top price chart pattern, a commonly appearing indicator used to establish resistance levels and possible ... Read Answer >>
  3. What are the main differences between a double top and a double bottom?

    Identify double tops and double bottoms, and learn what each could mean for the security's current price trend. Discover ... Read Answer >>
  4. What is a common price target when identifying a double top?

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