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The difference between a double bottom and a double Top
Double top patterns are the inverse of double bottom patterns. A double-top design is formed by two rounded tops. The first rounding of the top creates a U-shape. Rounding tops may indicate a bearish reversal after a prolonged bullish rise. Double peaks lead to similar conclusions. As resistance and fatigue mount, we notice a second rounded top that is slightly lower than the first. Even though they are uncommon, the formation of a double top frequently indicates that investors are hoping to cash in on the final gains of a bullish trend. Once a double top has formed, investors may be able to profit by selling the stock at a discount.

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