double top
double top definition - finance
A
chart pattern identified by technical analysis that represents a period during
which prices have risen and have remained elevated, followed by a dip,
succeeded by another rising top, and then another dip, which creates the
appearance of twin peaks. In this pattern, prices are unable to break through
resistance, or a ceiling, to move higher. When technical analysts see a double
top they say it indicates a reversal of a price trend because prices tried to
move higher and failed and will be moving lower. A double top is the inverse of
a double bottom.
Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.
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