Double Top and Double Bottom
A double top is two similar peaks with a dip between them that can signal a turn lower; a double bottom is the mirror image that can signal a turn higher.
A double top is a market saying “not higher than this” twice. The price rallies to a level, pulls back, rallies to roughly the same level again and fails. If it then falls below the low between the two peaks, the pattern is complete. A double bottom is the same story upside down. These are among the simplest reversal patterns to spot — and among the easiest to see where they do not exist. This entry explains how to confirm them and how traders measure targets.
- Category
- Price Action
- Reading time
- 5 min
- Also called
- Double top, Double bottom, M pattern
- Updated
Double tops and bottoms in plain words
Double top: two failed attempts at a resistance level, shaped like an “M”.1 Double bottom: two successful defences of a support level, shaped like a “W”. See Support and Resistance.
The middle low (or high) between the two extremes is the confirmation level.2 Until the price breaks it, the pattern is just a range. See Range.
How to trade a double top or bottom, step by step
Check the prior trend
A double top needs an uptrend before it; a double bottom a downtrend. See Trend.
Find two similar extremes
The two peaks (or troughs) should be at roughly the same level, with time between them.
Mark the confirmation level
The lowest point between two peaks, or the highest between two troughs.
Wait for the break
A close beyond the confirmation level completes the pattern.
Measure the target
The distance from the extremes to the confirmation level, projected from the break.
Place the stop
Beyond the second extreme, or beyond the confirmation level on a retest. See Stop Loss.
Worked examples
Example 1 — A double top
TopPeaks at $59 and $58.80, middle low $50. The price closes at $49.50.
| Pattern height | ≈ $59 − $50 = $9 |
| Target | $50 − $9 = $41 |
Two failures at $59 followed by a break of $50 complete the double top.
Example 2 — A double bottom long
BottomLows at $41 and $41.20, middle high $50. The price closes at $50.50. A trader buys at $50.50, stop $45, target $59.
| Risk | $5.50 |
| Reward | $8.50 |
| Reward-to-risk | ≈ 1.5 : 1 |
A stop below the midpoint of the pattern is a common compromise between safety and size.
Example 3 — Not yet a pattern
No patternA stock makes two highs near $75 and pulls back to $71, but never breaks the middle low of $69. It then rallies to $82.
| Middle low broken? | No |
| Result | Uptrend continued |
Two equal highs without a break of the middle low are just resistance — and resistance often breaks. See Breakout.
Double top and double bottom
Double top vs. double bottom
| Aspect | Double top | Double bottom |
|---|---|---|
| Shape | “M” | “W” |
| After | An uptrend | A downtrend |
| Confirmation | Close below the middle low | Close above the middle high |
| Target | Middle low − height | Middle high + height |
How traders use the patterns
Spotting tops and bottoms
Repeated failure at a level is a classic sign of exhaustion. See Reversal.
Defined entries
The confirmation level gives a clear trigger.
Targets
The measured move gives a first objective.
Range context
Before confirmation, the pattern is a range that may break either way.
Advantages and disadvantages
Advantages
- Simple to recognise.
- Clear confirmation, stop and target levels.
- Works on any timeframe and market.
Disadvantages
- Easy to see patterns that are not there.
- Often confirmed only after a large part of the move.
- Equal highs can also lead to a breakout higher.
- Targets are rules of thumb.
Going deeper
Read as far as you need. Each level builds on the one before it.
Patience matters
Beginner
Shorting the second peak before the middle low breaks is a bet that the pattern will complete — often it does not.
Triple tops and bottoms
Intermediate
Three failures at the same level form a triple top (or bottom). The logic is the same; the confirmation level is the lowest low (or highest high) between the extremes.
Liquidity around equal highs
Advanced
Equal highs and lows attract stop orders just beyond them. Price sometimes pokes through the second extreme before reversing, which some communities call a liquidity sweep. See Liquidity Sweep.
Common mistakes
Trading before confirmation
Wait for the middle level to break.
Ignoring the prior trend
Without a trend to reverse, the pattern means little.
Peaks too close together
Two highs a few bars apart are usually just noise.
Tight stops at the extreme
A poke beyond the second peak can trigger stops before the move.
Check your understanding
Test yourself before moving on. Each answer comes with an explanation.
Key points to remember
- Double top: two similar peaks, confirmed by a break of the middle low.
- Double bottom: two similar troughs, confirmed by a break of the middle high.
- Measured target: pattern height projected from the break.
- Before confirmation, it is just a range.
- Needs a prior trend to reverse.
Frequently asked questions
Do the two peaks have to be exactly equal?
Is a double bottom bullish?
How long should the pattern take to form?
Further learning
- Head and Shoulders
A three-peak reversal pattern.
- Reversal
How trends change.
- Support and Resistance
The levels these patterns form around.
- Range
What the pattern is before it confirms.
Sources
This article is written in our own words. The sources below support the specific facts, rules and figures marked with a number in the text. Links open the original publisher’s page.
- StockCharts ChartSchool. Double Top Reversal (opens in a new tab) Checked .
- StockCharts ChartSchool. Double Bottom Reversal (opens in a new tab) Checked .
Read more elsewhere
- Trading Metrics (our sister site): Double Top (opens in a new tab)
Educational content, not financial advice. Examples use hypothetical prices and simplified costs; actual fees, margin rules and regulations vary by broker, market and country. Trading Metrics is our sister site, under the same ownership; we are not affiliated with any other publisher linked above. Last reviewed . Report an error or request a source credit.