Price hits the same high twice and fails both times, forming an M shape. The trough between the peaks is the trigger level.
How to identify it
- Two peaks at about the same price
- Clear pullback between the peaks
- Second push shows weaker momentum
Entry
Sell a break below the middle trough (neckline).
Stop loss
Above the higher of the two peaks.
Target
Peak-to-neckline height projected below the break.
Invalidation
A clean close above both peaks.
Does it work for you?
Textbook reliability means little until you know your own numbers. Tag your double top trades in TradeZento and it shows your win rate, average win and loss, and P&L per trade for this pattern, so you know whether to keep it in your playbook.