Intermediate 5 min read
Double top, double bottom
The two reversals that bookend every trend. How to spot them early, and when they're a trap.
A double top forms when price tests a high, pulls back, and fails to make a new high on the second attempt — a sign buyers are running out of conviction. A double bottom is the mirror at support. The pattern confirms on a close through the middle trough (or peak), not on the second touch itself.
The trap: a shallow pullback between the two peaks (less than roughly a third of the move into the top) often means the trend is still intact and you're about to see a third push higher, not a reversal.