What is the difference between a double top and a double bottom?

A double top forms at highs and signals a possible move down; a double bottom forms at lows and signals a possible move up.

How far apart should the two peaks be?

Enough for a clear pullback between them — usually at least 10 to 20 candles on the chart you are trading.

Is a triple top stronger?

It shows more rejection, but it also means the level is being tested repeatedly, which can lead to a breakout.

Education · Price Action

Double tops and double bottoms, done properly.

A double top is price failing twice at the same high. A double bottom is price holding twice at the same low. Both are simple, both are common, and both are traded badly when traders enter before confirmation.

What confirms the pattern.

Two touches of roughly the same level, separated by a clear pullback.
A close through the pullback low (double top) or high (double bottom) — the neckline.
Momentum fading on the second touch, such as RSI divergence.

Entry, stop and target.

Enter on the neckline break or its retest.
Stop beyond the second top or bottom.
Target the pattern height projected from the neckline.

Common traps.

Selling the second touch of a high before the neckline breaks is a guess, not a pattern trade. In strong trends, double tops often turn into a pause and a breakout instead.

FAQ