Double Top / Double Bottom
Technical Analysis
A double top (or double bottom) is a reversal pattern where price twice fails to break a level, hinting the prevailing trend is exhausting.
What is a double top / double bottom?
A double top is a bearish reversal pattern that forms after an uptrend, when price rallies to a high, pulls back, rallies again to a very similar high, and then fails to push higher — creating a shape resembling the letter “M.” The low point between the two peaks is called the valley or neckline; a confirmed break below it signals the reversal is likely underway.
A double bottom is the mirror-image bullish version, forming after a downtrend, where price falls to a low, bounces, falls again to a similar low, and then fails to make a new low — creating a “W” shape. A break above the peak between the two lows confirms the pattern.
Why the pattern forms
A double top shows that buyers pushed price to a certain level twice but could not sustain a move beyond it, suggesting demand is running out at that price. A double bottom shows the same dynamic in reverse: sellers tested a low twice without being able to push price any lower, suggesting selling pressure is exhausted.
Example
If Bitcoin rallies to $70,000, pulls back to $66,000, rallies again to $70,200 (a very similar high), and then falls below $66,000, that break confirms a double top. Traders following this pattern might estimate a downside target by measuring the height of the pattern (from the peaks down to the neckline) and projecting that distance below the breakout.
Double top/bottom vs. head and shoulders
Both are classic reversal patterns built on the idea of a trend failing to make further progress, but a double top/bottom has only two peaks or troughs at similar heights, while head and shoulders has three, with the middle one more extreme.
Why it matters
Double tops and double bottoms are among the most recognizable reversal signals in technical analysis, useful for spotting when a trend may be losing steam. As with all chart patterns, false breaks occur, so confirmation (a decisive close beyond the neckline, ideally with volume) and a clear stop-loss plan are essential rather than acting on the pattern alone.
Related terms
See also chart pattern, head and shoulders, and support.