Double Top / Bottom

Price tests the same level twice and turns - strong reversal signal.

Double top: price hits resistance, pulls back, hits again, fails - buyers exhausted. Short signal triggers when the low between peaks breaks. Target = peak-to-low distance subtracted from the low. Double bottom is the mirror. ~70% reliable, but only after the key level breaks.

In plain words

Price tries the same ceiling twice and turns back twice - buyers out of fuel. Mirror: two equal lows = bullish reversal signal.

Example

ETH 2021: double top 4.4k (Nov) and 4.85k (Nov), neckline break 3.9k = bear down to 880 USD.

Also known as: M-top, W-bottom

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