Adani Ports

The Double Top is a classic reversal chart pattern that signals a potential trend reversal from bullish to bearish. It typically occurs after an uptrend and indicates that the price has tried to break through a resistance level twice but failed both times, leading to a downward breakout. 📈 Key Features of a Double Top: First Peak: The price rises to a high point (the first "top") and then pulls back. Trough (Neckline): A moderate decline between the two peaks forms a "valley." Second Peak: The price rises again to a similar level as the first peak but struggles to go higher. Breakout Point: A drop below the trough/neckline confirms the pattern, signaling a bearish reversal. ⚠️ How to Trade a Double Top: Entry Point: Enter a sell position when the price breaks below the neckline (the low point between the two tops). Stop-Loss: Place a stop-loss slightly above the second peak to manage risk. Target Price: The potential price target is roughly the same distance as the height of the pattern, projected downward from the neckline Stock chart is an example of double top pattern