What is the Double Top Pattern ? When Does the Double Top Pattern Occur? The Double Top Pattern is a well-known bearish reversal pattern used in technical analysis to signal a potential trend reversal from bullish to bearish. From several chart patterns, the Double Top Pattern plays a vital role. This post discusses the definition, methods to identify the pattern, and its advantages & disadvantages. Double top patterns are indicators of a long-term trend reversal. The bulls try to push the price twice before giving in to the bears. Double tops are popular patterns found on all time frames of charts. Those two peaks form a key resistance level, whereas the middle trough can be supported. Double top patterns signal potential trend reversals with two highs near the same level. Indicators with divergence signals, such as the RSI, can often hint at the presence of a double top . Within long bull markets, large double tops can often signal the start of a bear market.
