How to Trade Double Tops and Double Bottoms Translation: How to Trade Double Tops and Double Bottoms

When a double top or double bottom chart pattern pops up, a trend reversal is in the house, fam.

Let’s peep how to spot these chart patterns and finesse them in trading.

Double Top

A double top is a reversal vibe that shows up after a serious glow-up in the price action.

The “tops” are like peaks that form when the price hits a level it just can’t with.

After hitting this level, the price will bounce back a bit, but it’ll slide right back to test it again.

If the price bounces off that level again, then you’re looking at a DOUBLE top, my dude!

In the chart above, you can see two peaks or “tops” formed after a solid move up.

Peep how the second top couldn’t break higher than the first top. Major sus!

This is a hardcore clue that a reversal's 'bout to go down because it’s telling us the buying hype is running out of steam.

With the double top, we’d slap our entry order below the neckline 'cause we’re expecting that uptrend to reverse, frfr.

Whoa! Are we psychic or nah, 'cause we low-key always seem to be right!

Looking at the chart, you can see the price smashes through the neckline and makes a sick move down.

Remember, double tops are all about that trend reversal life, so keep your eyes peeled for these after a lit uptrend.

Also, notice the drop is about the same height as the double top formation. Big brain move for setting those profit goals.

Double Bottom

The double bottom is also a trend reversal move, but this time we’re about to go long instead of short. Let's get that bag!

These formations pop up after a mega downtrend when two valleys or “bottoms” form.

From the chart above, you can see after the previous downtrend, the price forms two valleys 'cause it couldn’t dip below a certain level. Big oof.

Notice how the second bottom didn’t really break the first bottom? That's a hint that the selling hype is almost over, and a reversal is about to hit.

Yo, check it out!

The price smashed through the neckline and made a solid move up. We love to see it!

Notice how the price jumped almost the same height as that of the double bottom formation? That’s the tea, sis!

Remember, just like double tops, double bottoms are all about that trend reversal lifestyle.

Watch out for these after a major downtrend. You got this!