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Double Top and Double Bottom: What Confirms Them | Borearis
A double top is two highs at roughly the same level; a double bottom is two lows. The pattern is only useful with a neckline break that holds.
What confirms it
- Two swing highs within a small range of each other.
- A neckline drawn at the swing low between them.
- A close below the neckline, not just a wick.
The failed version
If price breaks the neckline and closes back above it, the pattern failed and often runs the other way. Failed patterns trap the early sellers.
How to trade it
Wait for the close, place the stop above the second top, and target the measured move. Size the position from the stop.
Use the position size calculator and the risk-reward calculator before entry.
How equal do the two tops need to be?
Within a small fraction of the price; minor differences are normal.
Is the measured move reliable?
It is a target, not a promise. Trail or take partials if momentum fades.
Educational content only, not investment advice.