Is a Double Tops Oil Trading Pattern Bullish or Bearish?

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

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

Double Tops Oil Trading Pattern

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

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

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

Summary:

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

Is a Double Tops Oil Chart Pattern Bullish or Bearish?