Double top

This is another reversal chart pattern used in forex trading. It is formed after an extended uptrend. A certain resistance level has not been broken once, the price comes down, and then the bulls attempt breaching it for a second time. If the attempt is unsuccessful, the price will jump down from that level again. That’s called a Double Top. The pattern is complete when the fx market breaks the neckline, so we deem it a good idea to place pending orders to enter the market just below the neckline.

Double top pattern