Glossary · Candlestick & Chart Patterns
Double top / Double bottom
Two peaks or troughs at similar levels.
A double top forms when price reaches a similar high twice and fails to break through, often resembling an “M.” A double bottom reaches a similar low twice and holds, resembling a “W.” Both are reversal patterns that complete when price breaks the midline between the two extremes.
The second test matters: stalls at the same high or low can show that momentum is struggling to continue. Volume and the decisive break of the pattern’s midpoint are common confirmation tools.
Example
A stock hits $75, pulls back to $68, rallies to $74.80 again, then falls through $68 — a double-top style failure that opens room toward lower support.
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