Double Top Pattern

What does double top pattern mean?

A double top is a reversal pattern that forms when price rises to test an upper resistance level twice before reversing and heading lower.

The pattern looks like two hills on the chart with equal, or nearly equal peaks. Once the second peak has formed price will decline, and if it breaks below the lower boundary of the double top pattern the market is considered bearish and traders will expect an extended downtrend as the market transitions from a bull market to a bear market.