Is Double Tops Pattern Bullish or Bearish?

Double Top Chart Pattern

Double Tops Chart Pattern is a Bearish Stock Pattern - Double Tops Pattern is a Bearish Stocks Signal Pattern

Summary:

• Double tops stocks pattern forms after an extended move upwards- upwards stocks trend
• Double tops stocks pattern signal indicates that there will be a reversal in stocks market trend
• We sell when the price breaks-out below neckline: as explained on the stocks example illustrated and explained below.

Stocks Trade a Double Top Chart Pattern in Stocks?

Double tops stocks pattern look like an M-Shape pattern, the best reversal stocks signal from the double top chart pattern is where second top is lower than the first top as shown below:

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

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