Double Tops and Bottoms

Double Tops and Bottoms

What is a double top? 


A double top is formed when an asset's price rises to a high point, then retreats, and later rises again to the same high point before declining again. The pattern looks like two peaks (or tops) that are roughly equal in height, with a trough in between.


What is a triple top? 


The same thing, but it happens three times. 


The reverse can happen with bottoms.


If there is a double top, it indicates there may be a better time to buy coming up in the near future.



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