Double bottom and double top
double top breakout - definition of double top breakout - A technical chart pattern in which a stock price moves to a high level, The double top formations and double bottom are formations with high reliability indicate a trend change.
It is characterized by the existence of two peaks of similar size and both involve a corrective phase, although minor variations are supported.
A Double Top Breakout price pattern has a high possibility of breakout to the downside . It is considered a bearish price formation. Double top Features:
Appears in bull markets
Once implies a downward corrective phase.
It is a common figure.
It is a figure with great reliability
It consists of two peaks at the same level that act as resistance and an intermediate point between them, called the neckline. When drilling down or neckline this formation is triggered bearish with a target equal to the height that separates the neckline of the top two.
The behavior of the market volume during training tends to be: falling between points 1 and 2. Loud the rupture or perforation of the neckline. If a pullback volume should be very low. When the price is heading to the target volume growing again.
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