Double top and double bottom
A double top is a reversal pattern of two highs at roughly the same level with a pullback between them, and a double bottom is its mirror image made of two lows.
How it works
A double top shows up after a rally: price makes a high, pulls back, rises again to the same level and fails to break it. The low between the peaks forms the neckline. The pattern is only complete when price closes below the neckline. Until then it is just two touches of resistance.
A double bottom is the same after a decline: two lows at one level and a break above the neckline. Volume is often lower on the second touch, a sign that sellers (or buyers, for a top) are running out of steam.
The classic target is the pattern's height measured from the neckline. After the break, price often comes back to the neckline for a retest. This is not a law: some patterns fall short of the target or fail outright.
BTC tops at $70,000 and $69,800, with a low of $66,000 between them: that is the neckline. The pattern is about $4,000 tall. A close below $66,000 completes it, and the rough target is around $62,000. A stop often goes above the second top.
The mistake is shorting at the second top before the neckline breaks. While the neckline holds, price can break the highs and the double top turns into trend continuation. Wait for a close through the neckline or a retest, and put your stop beyond the second top.
Questions and answers
What is a double top in simple terms?
It is when price hits the same high twice and cannot break it. A break below the neckline then signals a possible reversal.
How do you calculate a double bottom target?
Measure the distance from the lows to the neckline and project it up from the neckline breakout. It is a guide, not a guaranteed target.
What is the difference between a double top and head and shoulders?
A double top has two roughly equal highs, while head and shoulders has three, with the middle one higher than the two on the sides.
Related terms
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Updated: 2026-10-19