Double Top


DEFINITION of 'Double Top'

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


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

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

    The double top trend is a charting pattern used in technical analysis to spot a price reversal pattern in a given security ... Read Full Answer >>
  2. What is a common price target when identifying a double top?

    One of the most commonly occurring chart patterns is the double top, an M-shaped price fluctuation that helps traders recognize ... Read Full Answer >>
  3. What are some of the most common technical indicators that back up Doji patterns?

    The doji candlestick is important enough that Steve Nison devotes an entire chapter to it in his definitive work on candlestick ... Read Full Answer >>
  4. How do I use discounted cash flow (DCF) to value stock?

    Discounted cash flow (DCF) analysis can be a very helpful tool for analysts and investors in equity valuation. It provides ... Read Full Answer >>
  5. Tame Panic Selling with the Exhausted Selling Model

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