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 Trading 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 downwards indices trend line 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 downwards trend line.

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