- Double Top Reversal Pattern
Security within the context of an uptrend has the most recent swing high equal or nearly equal to the previous swing high.
The Double Top pattern can be formed because the sentiment that was formerly producing the uptrend is now possibly shifting and buying pressure is not strong enough to produce a higher swing high to keep the uptrend intact.
Double Tops can be a stronger downward reversal pattern after further confirmation when the next swing high that is produced is even lower.
Technical analysts will use Double Tops to begin trying to find new selling opportunities as well as avoid buying the asset until a new buy setup is formed.
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