Double Top / Double Bottom

Double Top / Double Bottom - Reversal chart patterns of two peaks or troughs at similar levels after an extended move. A double top occurs when price forms two highs at about the same level and then drops below the intervening support, signaling a bearish reversal. A double bottom is the inverse (two lows and then a break above resistance), signaling a bullish reversal. Automated systems may detect these patterns to anticipate trend changes.