Double Top
BearishReliability: HighAlso called · M pattern, double high
A bearish reversal where price is rejected twice at the same level and rolls over.
How to spot it
- The two highs are at a similar height
- The low between them acts as support
Why this shape forms
One price was attacked twice and rejected twice. Someone is genuinely waiting to sell there, and now you have written proof of it.
Where it actually means something
It has to come at the end of an advance. Two highs during a decline are failed bounces, nothing more.
What else to check
The low between the two highs has to break on a close. Lighter volume on the second high says the buying thinned out.
This means you're wrong
If the middle low holds and the high breaks, it's continuation up instead.
The mistake beginners make
Shorting straight off the second high. Losing the middle low is the confirmation.
Easy to confuse with
The second high often pokes slightly above the first before failing. That is not a double top, that is a false breakout, and it can drop faster.
Real examples from the community
Patterns are probabilistic tendencies, not guarantees. This is not investment advice.