Is a Double Tops Chart Pattern Bullish or Bearish?

A double top chart pattern has an M shape and it occurs at a market top hence its name double top chart pattern and it signals a bearish cfd price reversal in the cfd trading market.

Once a double top chart pattern is confirmed then the cfd market will be considered to be bearish, therefore a double tops is bearish.

Double Tops Trading Pattern

Double tops cfd pattern is a reversal chart pattern that is formed after an extended upward cfds trend. As its name implies, this double top chart pattern formation is made up of two consecutive peaks which are roughly equal, with a moderate trough between.

This double tops pattern formation is considered complete once cfd price makes second peak & then penetrates lowest point between the highs, known as the neckline. The sell signal from this double top chart pattern formation occurs when the cfd market breaks-out below neckline.

In CFD, this double top pattern formation is used as a early warning trading signal that a bullish cfds trend is about to reverse. However, double top chart pattern is only completed once the neckline is broken and the cfd market moves below the neck-line. Neckline is just another name for the last support level formed on the CFD chart.

Summary:

• Double tops cfd chart pattern forms after an extended move upward
• This double top pattern formation indicates that there will be a reversal in the cfd trading market
• We sell when the price breaks out below the neck line point: see below for an explanation.

Double Top Pattern - Is a Double Top Pattern Bullish or Bearish?