Term

Double tops

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Double tops is the opposite of a double bottoms, it is characterised by the market rallying to a resistance and only to get rejected by sellers. Meaning price is either regarded as too high or overvalued. Hence sellers selling prices, but what happens is that the market returns to that same price area in the near future. Only to get rejected by the sellers. The market is said to have created a double top. Why? because the market made a top and got rejected and the market made another attempt to break the same price area only to get rejected again by sellers. This gives off the indication that there is excess selling at that price area. There are more sellers than there are buyers. Hence prices keep dropping from that price level.

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