A double top is a bearish reversal chart pattern that typically forms after an uptrend. It consists of two peaks at approximately the same price level, separated by a trough. The first peak indicates the price reaching a high, followed by a decline to the trough, where buyers enter again. If prices rally back to the height of the first peak but fail to break through and then decline again, this often signals a trend reversal. In many markets, the double top pattern is considered complete when the price breaks below the trough between the two peaks, confirming the bearish sentiment.
