What Does a Double Tops Chart Pattern Look Like?

Example of Double Tops Chart Pattern

Double Tops Chart Pattern is a Bearish Commodities Trading Pattern - Double Tops Pattern is a Bearish Commodity Trading Signal Pattern

Summary:

• Double tops commodities pattern forms after an extended move upwards- upward commodity trend
• Double tops commodities pattern signal indicates that there will be a reversal in the commodities trading market trend
• We sell when price breaks-out below neck-line: as explained on the commodities trading example shown below.

Analysis of Double Tops Chart Pattern?

Double tops commodities chart pattern look like an M Shape pattern, the best reversal commodity trading signal from the double top chart pattern is where second top is lower than the first top as illustrated and shown below:

This means that the reversal commodity signal can be confirmed by drawing a downward commodity trend line as shown below. If a trader opens a sell commodity trade using this double tops reversal commodity signal the stop loss will be placed just above this downward trend line.

Analysis of Double Tops Pattern - Example of Double Top Chart Pattern