A hands-on options curriculum covering real trading concepts. Read the lessons, work through examples, and test your knowledge.
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Lesson 8: 6.7: Double Tops and Bottoms
Learn to identify and execute Double/Triple Tops and Bottoms with strict breakout confirmation.
1. Rejections of Key Extremes
A Double Top is a bearish reversal pattern that forms after an asset reaches a high price twice and suffers a strong rejection, establishing a horizontal resistance ceiling.
A Double Bottom is the bullish equivalent, where the asset tests a key support level twice, holds, and bounces. The intermediate swing high between the two bottoms serves as the neckline breakout trigger.
★ Practical Tip: Triple Tops and Bottoms are rarer but even more powerful, reflecting severe psychological barriers that the market is unable to break.
Click to enlargeTechnical Market Structure Blueprint
Interactively map key institutional Price Action patterns. Switch between the 4 technical blueprints below and click the glowing blue hotspots to dissect the market mechanics.
Pattern Technical Explainer
Select any glowing node on the technical chart to inspect the institutional structure details.
KNOWLEDGE RECONNAISSANCE
What serves as the breakout trigger level for a Double Bottom pattern?
More lessons in this module
- 6.0: Introduction to Chart Patterns
- 6.1: Flag Patterns
- 6.2: Pennant Patterns
- 6.3: Triangle Formations
- 6.4: Wedge Patterns
- 6.5: Channel Trading Mechanics
- 6.6: Head and Shoulders Formations
- 6.8: Cup and Handle Pattern
- 6.9: Ascending and Descending Triangle Breakouts
- 6.10: Pattern Failure & Trap Mechanics
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