Double Top vs Double Bottom
A detailed side-by-side comparison of the Double Top and Double Bottom chart patterns.
An M-shaped pattern where price tests resistance twice and fails, signaling a bearish reversal.
Best for
Bearish reversal at major resistance levels
A W-shaped pattern where price tests support twice and holds, signaling a bullish reversal.
Best for
Bullish reversal at major support levels
Key Differences
- Double Top is bearish (M-shape); Double Bottom is bullish (W-shape)
- Top tests resistance; Bottom tests support
- Both use the neckline break as confirmation
- Both have the same measured move formula (height of the pattern)
- Both are among the most commonly traded chart patterns
When to Use Double Top
Use Double Top when price reaches the same resistance level twice and fails. Enter short on the neckline break with a target equal to the distance between the peaks and the neckline.
When to Use Double Bottom
Use Double Bottom when price tests the same support level twice and holds. Enter long on the neckline break with a target equal to the distance between the troughs and the neckline.
Frequently Asked Questions
Are Double Top and Double Bottom equally reliable?▾
Both are highly reliable. Some studies suggest Double Bottoms have a slightly higher success rate in equity markets due to the long-term upward bias of stocks.
Do the two peaks/troughs need to be at the exact same level?▾
No, they can vary by 1-3%. What matters is that price clearly tested and failed at approximately the same level twice.