Double Top and Bottom Pattern Indicator
The Double Top and Bottom Indicator is a popular technical analysis tool used to identify potential reversal points in the market. A Double Top pattern signals a bearish reversal, where two peaks form at roughly the same price level, indicating resistance; entries can be placed after a break below the pattern's support level, confirmed by volume or additional indicators. Conversely, a Double Bottom pattern suggests a bullish reversal, characterized by two troughs at a similar price, with entries ideally occurring after a break above the resistance level formed between the bottoms, again confirmed by supporting signals. Always manage risk with stop-loss orders and consider market context for optimal entries.