Double tops & double bottoms
The M and the W: a level tested twice, then a verdict.
The M (double top)
Price rallies to a peak, sells off, and rallies back to nearly the same price — then fails again. Two failed attempts at the same ceiling weaken the buyers behind it.
The W (double bottom)
The mirror: two defenses of the same floor, then a breakout through the middle bump. The seller who could not make a new low is in trouble.
The trigger and the trap
The trade is the break of the valley (or bump) between the two peaks — not the second touch itself. And the two extremes must genuinely match: a clearly higher second high is a different animal.
Quick check
The double top trade triggers when…
- Price breaks below the low between the two peaks
- The first peak prints
- Price touches the ceiling twice
- Volume disappears
The second peak only sets the stage. The verdict is the break of the middle low.
This lesson is part of the free learning path at /academy/ — progress, XP and boss games live there.
Educational content only — not financial advice.