Double Top Technical Pattern
Learn about the Double Top pattern in stock trading - a bearish reversal pattern that signals potential downward movement. Understand how to identify and trade this technical analysis pattern effectively with volume analysis and key indicators.
Recent Double Top Patterns
15 patterns found
Dongsuh Cos. Inc.
KR
Market Cap: 2.12B
Industry: Food Distribution
Double Top
7/4/2025
Bearish reversal pattern showing two consecutive peaks at a resistance level, indicating a potential downtrend
Kainos Medicine Inc
KR
Market Cap: 24.77M
Industry: Biotechnology
Double Top
7/4/2025
Bearish reversal pattern showing two consecutive peaks at a resistance level, indicating a potential downtrend
Hyundai Engineering Plastics Co. Ltd.
KR
Market Cap: 76.34M
Industry: Auto Parts
Double Top
7/4/2025
Bearish reversal pattern showing two consecutive peaks at a resistance level, indicating a potential downtrend
Hyundai Livart Furniture Co Ltd
KR
Market Cap: 122.12M
Industry: Furnishings, Fixtures & Appliances
Double Top
7/4/2025
Bearish reversal pattern showing two consecutive peaks at a resistance level, indicating a potential downtrend
Eugene Technology Co Ltd
KR
Market Cap: 705.80M
Industry: Semiconductors & Semiconductor Equipment
Double Top
7/4/2025
Bearish reversal pattern showing two consecutive peaks at a resistance level, indicating a potential downtrend
Champion Iron Ltd
AU
Market Cap: 1.40B
Industry: Steel
Double Top
7/4/2025
Bearish reversal pattern showing two consecutive peaks at a resistance level, indicating a potential downtrend
Aristocrat Leisure Ltd
AU
Market Cap: 28.25B
Industry: Gambling
Double Top
7/4/2025
Bearish reversal pattern showing two consecutive peaks at a resistance level, indicating a potential downtrend
Korea Gas Corp.
KR
Market Cap: 2.58B
Industry: Utilities - Regulated Gas
Double Top
7/4/2025
Bearish reversal pattern showing two consecutive peaks at a resistance level, indicating a potential downtrend
Sinsin Pharmaceutical Co. Ltd
KR
Market Cap: 63.83M
Industry: Drug Manufacturers - Specialty & Generic
Double Top
7/4/2025
Bearish reversal pattern showing two consecutive peaks at a resistance level, indicating a potential downtrend
Veridis Environment Ltd
IL
Market Cap: 1.07B
Industry: Waste Management
Double Top
7/3/2025
Bearish reversal pattern showing two consecutive peaks at a resistance level, indicating a potential downtrend
Alony Hetz Properties and Investments Ltd
IL
Market Cap: 2.39B
Industry: Real Estate Services
Double Top
7/3/2025
Bearish reversal pattern showing two consecutive peaks at a resistance level, indicating a potential downtrend
Hanan Mor Group - Holdings Ltd
IL
Market Cap: 4.45M
Industry: Real Estate - Development
Double Top
7/3/2025
Bearish reversal pattern showing two consecutive peaks at a resistance level, indicating a potential downtrend
Shapir Engineering and Industry Ltd
IL
Market Cap: 3.18B
Industry: Engineering & Construction
Double Top
7/3/2025
Bearish reversal pattern showing two consecutive peaks at a resistance level, indicating a potential downtrend
Electra Real Estate Ltd
IL
Market Cap: 1.01B
Industry: Real Estate Services
Double Top
7/3/2025
Bearish reversal pattern showing two consecutive peaks at a resistance level, indicating a potential downtrend
GIVOT OLAM OIL EXP ILS1
IL
Market Cap: 0.81M
Industry: Oil & Gas E&P
Double Top
7/3/2025
Bearish reversal pattern showing two consecutive peaks at a resistance level, indicating a potential downtrend
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View Full Platform →About Double Top Patterns
Double Top patterns are technical chart formations that traders and investors use to identify potential entry and exit points. These patterns are based on historical price movements and can help predict future price direction.
Understanding the Double Top in Stocks
What is the Double Top Pattern in Stocks?
The Double Top pattern is a bearish reversal pattern that appears at the end of an uptrend, indicating a potential downward movement. This pattern forms when the price of a stock hits a high twice, with a moderate low in between, resembling the letter "M" on a price chart. In stock trading, the Double Top pattern is significant because it often marks the end of a bullish phase and the beginning of a bearish trend. Recognizing this pattern can help traders anticipate price movements and make strategic trades.
How to Identify Double Top Patterns
Identifying the Double Top pattern involves several key steps:
- Initial Uptrend: Look for a clear uptrend where the price reaches new highs.
- First Top: The price hits a high point and then declines to form a moderate low.
- Second Top: The price rises again, hitting a similar high point as the first top.
- Breakout: The price declines and breaks below the moderate low, confirming the pattern.
Identifying a Double Top Pattern
In this example, we use a typical candlestick chart to illustrate the formation of a Double Top pattern. Key elements to observe include the initial uptrend, the formation of the first and second tops, and the subsequent breakout.
- Initial Uptrend: The price of the stock shows a clear uptrend, indicating bullish market sentiment.
- First Top: The price hits a high point and then declines to form a moderate low.
- Second Top: The price rises again, hitting a similar high point as the first top.
- Breakout Confirmation: The price declines and breaks below the moderate low, confirming the pattern.
Double Top Pattern

Key Indicators
- Candlestick Patterns: Look for reversal candlestick patterns near the tops.
- Volume Spikes: Increased trading volume often accompanies the breakout, indicating strong selling interest.
- Resistance Levels: The tops should align with significant resistance levels on the chart.
Double Top Pattern with Volume Analysis
This example highlights the role of volume in confirming the Double Top pattern. Volume analysis can provide additional confidence in the pattern's validity.
- Initial Uptrend: The price trend is upward, characterized by increasing prices and moderate volume.
- First Top: The price hits a high point with moderate volume as sellers begin to enter the market.
- Second Top: The price rises again, hitting a similar high point as the first top with moderate volume.
- Breakout: The price declines and breaks below the moderate low with a significant spike in volume, confirming the pattern.
Double Top Pattern with Volume

Frequently Asked Questions
What is the Double Top pattern in stock trading?
The Double Top pattern in stock trading is a bearish reversal pattern that appears at the end of an uptrend. It indicates a potential downward movement and is characterized by the price hitting a high point twice with a moderate low in between, resembling the letter "M."
How reliable is the Double Top pattern in stocks?
The Double Top pattern is considered a reliable bearish reversal signal in stock trading, especially when confirmed by increased trading volume and a strong breakout below the moderate low. However, it should be used alongside other technical analysis tools.
Can the Double Top pattern appear in any stock?
Yes, the Double Top pattern can appear in any stock. It is a widely applicable chart pattern used in technical analysis across various assets, including stocks.
What common mistakes should be avoided when trading the Double Top pattern?
Common mistakes include entering the trade too early before the breakout confirmation, not confirming the pattern with volume analysis, and failing to set appropriate stop-loss levels to manage risk. By understanding and utilizing the Double Top pattern, traders can better anticipate bearish reversals and optimize their trading strategies for improved outcomes in the stock market.
What are the key indicators to consider when trading the Double Top pattern in stocks?
Key indicators include identifying significant resistance levels, confirming the pattern with increased volume during the breakout, and observing reversal candlestick patterns near the tops. These indicators help validate the Double Top pattern and provide insights for potential significant price movements.