Chart patterns

Double tops, double bottoms and ranges

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In this lesson

Recognise double tops and bottoms, use the neckline as a trigger, and treat patterns as probabilities, not promises.

Key takeaways

• A double top shows two failed attempts at the same high; it completes on a break below the neckline.
• A double bottom shows two holds at the same low; it completes on a break above the neckline.
• The pattern's height gives a rough target estimate.
• Patterns fail often enough that a stop and a small size are essential.

Next lesson: Moving averages

Educational information only - not financial advice.