A Double Top is a price pattern that indicates a potential reversal in an upward trend. It occurs when the price reaches a peak, pulls back, and then rises again to the same level as the previous peak before declining once more.This formation consists of two peaks that are roughly equal in height, creating an “M” shape on the price chart. The first peak is followed by a correction or pullback, allowing traders to see a weakness in the bullish momentum. Once the price fails to break through the previous high a second time, it often leads to a significant drop, suggesting that buyers are losing control and sellers are gaining strength. This pattern can signal a good opportunity for traders to consider short positions, as it may indicate a forthcoming downward trend. Traders often look for confirmation through volume analysis or additional indicators before making decisions based on a Double Top formation. Recognizing this pattern can be a valuable tool in market analysis and decision-making.