Double Top vs Double Bottom Pattern (Comparison): Explaining the Difference

Double Top and Double Bottoms is a chart pattern that is used to determine a reversal in trend.

In this article will explain the difference between Double Top and Double Bottoms

What is a Double Top Pattern?

A Double Top pattern is when two sharp peaks around the same price level gets rejected, and followed by a strong downtrend.

Once the price action is below the lowest low of the formation, it has confirmed the Double Top pattern.

The lowest low of the Double Top pattern is called the, “Confirmation Point”.

Is Double Top Pattern Bullish or Bearish?

Double Tops are considered bearish signals. It indicates a possible reversal of the current uptrend to a new downward trend.

What is a Double Bottom Pattern?

A Double Bottom pattern is when two sharp peaks around the same price level and rallies.

Once the price action is rises above highest high of the formation, it has confirmed the Double Bottom pattern.

The Highest high of the Double Bottom pattern is called the, “Confirmation Point”.

Is Triple Bottom Pattern Bullish or Bearish?

Double Bottoms are considered bullish signals. It indicates a possible reversal of the current downtrend to a new uptrend trend.