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Simply, the double top or bottom reversal is a pattern that tends to form after a prolonged extension upward or downward. It signifies that the momentum from the uptrend has stalled and may be coming to and end.
The following battle between buyers and sellers lasts temporarily and ends with buyers attempting a final push upward before we see the price action decline.
This final push creates a second peak in an otherwise stable channel pattern, forming a double top. Learn more about technical analysis in our Technical Analysis Tutorial. Here, the euro makes a high against the U.
After two and a half months of stable, range-bound trading, buyers make a final push higher in July before surrendering to sellers. Phone Number Please fill out this field. Country Please Select Please select a country. Yes No Please fill out this field. For more info on how we might use your data, see our privacy notice and access policy and privacy website. Or, read more articles on DailyFX. Your forecast is headed to your inbox. An error occurred submitting your form.