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

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?

    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 >>
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    Fibonacci retracement is a very popular tool among technical traders and is based on the key numbers identified by mathematician ... Read Full Answer >>
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    A company's working capital ratio can be too high in the sense that an excessively high ratio is generally considered an ... Read Full Answer >>
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