Double Tops

Double Tops

[Commentary]

From Investopedia

Definition of 'Double Top'

A term used in technical analysis to describe the rise of a stock, a drop, another rise to the same level as the original rise, and finally another drop. 

Investopedia explains 'Double Top'

The double top looks like the letter "M". The twice touched high is considered a resistance level. 

[Relevant Free Videos]

[Relevant Books]

[Relevant Blog Posts]

http://stockcharts.com/school/doku.php?id=chart_school:chart_analysis:chart_patterns:double_top_reversal

[Additional Commentary]

I can't recommend the Stikky Stock Charts book enough if you are new to trading. It is designed to be read in two sittings and is a great book for getting you started on technical analysis.

Double Tops are a classic reversal pattern and a great place to look for taking short positions against a stock.

Related Categories:




Notice:
Please post in the comments any additional videos, books, blog posts on the subject of this post so they can be added.