The double top and double bottom

The double top and the double bottom are among the clearest and easiest reversal patterns to read. The double top takes the shape of the letter M, and the double bottom takes the shape of the letter W.

The shape and its formation

The double bottom forms at the end of a downtrend: price falls to a first low, then rebounds to an intermediate peak, then falls a second time to a low roughly equal to the first, then rebounds. The pattern is not complete unless price breaks the level of the intermediate peak between the two lows. The double top is its exact opposite at the end of an uptrend.