Double Top Pattern & Double bottom

This pattern is quite common happening in stocks & this is very easy to be recognized. Sometimes the pattern (double top & bottom) are called as an "M-pattern" or "W-pattern".

M-pattern is usually found at the top of an uptrend & vise-versa the W-pattern is usually found at the bottom of a downtrend. Every breakout of the neckline or the bottom or top line must be followed with high volume, so the breakout is a valid one.

Double top happened when a level of price can't be broken for twice & at the same area, the price bounces down twice & broken the support of the 1st bounce down with a very high volume breakdown. And the double bottom is the vise-versa of the double top. See the figure

Happy Investing^^
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