Double Top / Double Bottom
Two consecutive tests of the same price zone — Double Top bearish, Double Bottom bullish.
Double Top and Double Bottom are common reversal patterns indicating price failed to break a key level in two attempts.
Double Top (M pattern):
•Price reaches peak → falls → rises again to same zone → falls
•Forms letter "M"
•Signal: break below neckline (trough between two peaks)
•Bearish reversal
Double Bottom (W pattern):
•Price reaches trough → rises → falls again to same zone → rises
•Forms letter "W"
•Signal: break above neckline (peak between two troughs)
•Bullish reversal
Confirmation:
•Break with high volume is stronger confirmation
•Without volume breakout is less reliable
Target:
•Pattern height projected from neckline
Examples:
•BTC Double Bottom March 2020 → 40% pump
•ETH Double Top November 2021 → drop to $1000
Triple Top/Bottom:
•Three tests instead of two — rare but stronger signal