• Shreezan Ban
• Jan 10, 2023
• Swing Trading

EUR-NZD

The double top pattern is considered a bearish reversal pattern because it indicates that the upward momentum that was driving the stock or other asset higher is starting to weaken, and that the price may be about to fall. In order to confirm a double top pattern, traders typically look for a move below the trough (or "neckline") that separates the two peaks. This move below the neckline is usually accompanied by a significant increase in volume, which confirms the trend reversal.