Is Double Tops Pattern Bullish or Bearish?

Example of Double Tops Chart Pattern

Double Tops Chart Pattern is a Bearish Stock Indices Chart Pattern - Double Tops Pattern is a Bearish Indices Trade Signal Pattern

Summary:

• Double tops stock indices chart pattern forms after an extended move upward - upwards indices trend
• Double tops stock indices chart pattern signal indicates that there will be a reversal in stock indices trading market trend
• We sell when stock indices price breaks out below the neck line: as described on the stock indices example explained below.

Technical Analysis of Double Top Pattern?

Double tops stock indices pattern look like an M Shape pattern, the best reversal stock indices signal from the double top stock indices chart pattern is where the second top is lower than the first top as displayed below:

This means that the reversal stock indices signal can be confirmed by drawing a down-wards indices trendline as shown below. If a trader opens a sell indices trade using this double tops reversal stock indices signal the stop loss will be placed just above this down-wards trendline.

Technical Analysis of Double Tops Stock Indices Chart Pattern - Example of Double Tops Chart Pattern