PFC DOUBLE TOP

Oct 12

The double top is a bearish reversal pattern that appears on a chart when the price of an asset reaches a high point twice with a moderate decline between the two highs1
. It looks like the letter "M" and signals that the asset might be losing its upward momentum2
.

Here's how to identify and interpret a double top pattern:

Two High Points: The price reaches a high level, pulls back, and then rises again to the same high level3
.

Support Level: The low point between the two highs forms a support level1
. If the price falls below this support level, it confirms the double top pattern1
.

Volume: Look for higher trading volume on the second high and a decrease in volume on the decline, which confirms the pattern4