What is the Pattern
Double top is a well known bearish reversal move, it occurs when the price roughly hit a high level twice without breaking it, because it forms like “M” it has the character name.
Double top pattern is a signal that the buyers start to lose interest and the market is exhausted of buying
How it forms:
It occurs when the price faces a resistance level in an uptrend momentum, after small pullback the price start to go up again trying to break the resistance levels, we got a complete pattern when the price cannot break the resistance line and go down in a reversal move.
In the general trading world you must wait for specific signal to take a trading decision, we have the same for this pattern, usually the price doesn’t hit exactly the same level, it’s enough to be close to the first peak.
This pattern is one of the most seen and recognized pattern, so before jumping to the trade, wait for a signal like breaking support level or a trend line, this pattern could mislead you and resume the uptrend momentum again.
Traders must pay more attention to indicators, using indicators is important to monitor and register the two peaks points,

