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 gold trading price reversal in the gold market.

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

Double Top Chart Pattern

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

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

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

Summary:

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

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