Double Top

Double top is a bearish technical chart pattern where the price reaches a high twice and fails to break out higher during the second attempt. The pattern resembles the letter "M" and consists of two peaks of roughly equal height with a trough between them.

Here's how the pattern typically develops:

1. First peak: the price rises to a new high, creating the first peak of the "M" shape;

2. Bottom: after reaching the first peak, the price declines. It represents a support level where the price temporarily stabilizes before rising again;

3. Second peak: the price rises again to a second peak, which is roughly at the same level as the first one. This indicates that the buying pressure has weakened and the price struggles to break through the previous high;

4. Breakdown: the pattern is confirmed when the price falls below the bottom level (the support level formed between the two peaks). This breakdown signifies that the upward momentum is fading and a bearish trend may be starting.

The double top pattern is a valuable tool in technical analysis for identifying potential reversals, but it is often used in conjunction with other indicators and analysis methods to confirm trading signals.

A double bottom is an opposite movement in price compared to a double top.