The double top pattern is a typical top reversal signal.
The core logic:
The first step is that the price attempted to reach the same high point twice but failed, forming a clear resistance level.
Step two, both pullbacks occurred in the same support area.
Step three, once the support is effectively broken, the pattern is established.
If the rebound test fails to re-establish itself in this area, it presents an opportunity to increase positions or to short in line with the trend.
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
The double top pattern is a typical top reversal signal.
The core logic:
The first step is that the price attempted to reach the same high point twice but failed, forming a clear resistance level.
Step two, both pullbacks occurred in the same support area.
Step three, once the support is effectively broken, the pattern is established.
If the rebound test fails to re-establish itself in this area, it presents an opportunity to increase positions or to short in line with the trend.