BeginnerLesson 1 of 4 · 7 min
Double Tops and Bottoms
Two tests of the same level and the neckline that confirms the pattern.
Illustrative chart · Double top
The structure
A double top forms when price rallies to a level, pulls back, rallies to roughly the same level and fails again. The low between the peaks is the neckline.
Until the neckline breaks, it is just a range. The double bottom is the mirror image at lows.
Measuring
A common reference projects the height from peaks to neckline downward from the break. Treat that as a planning reference, not a forecast.
Key takeaways
- No neckline break, no pattern.
- Heights give reference targets, not promises.
- Mirror logic applies to double bottoms.
Charts are illustrative examples, not real market data. This content is for educational purposes only and is not financial advice.