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The double top is a bearish reversal chart pattern that typically signals a shift from an uptrend to a downtrend. It's commonly used in technical analysis of stocks, forex, and other financial instruments. Here's a breakdown: 📈 What is a Double Top? A double top forms after an extended upward trend and consists of two peaks (tops) at roughly the same price level, separated by a moderate trough (pullback). This pattern suggests that buying pressure is weakening, and sellers may be taking over. 🔍 Key Components: First Top: Price reaches a new high, then pulls back. Trough (Support Level): Price declines to a support level, often called the “neckline.” Second Top: Price rises again but fails to break above the first top — a sign of reduced bullish momentum. Breakdown: If the price breaks below the neckline, it's considered a confirmation of the pattern. This is often the sell signal.