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Double Top

MSFT PullbackPattern Identified: Bearish Double Top pattern confirmed on Microsoft ( NASDAQ:MSFT ) with neckline break and clear measured move objectives. Neckline Break Triggers Measured Move to Gap Fill. Key Confluence: First Top: Initial rejection Second Top: Failed breakout, lower high Neckline: Support connecting swing lows between tops Confirmation: Neckline break & retest completed Measured Move Calculation: TP1: Distance from highest top to neckline, projected onto the breakout zone = $430 TP2: Gap fill zone from May 1st, 2025 = $400 SL: Above Neckline at previous confirmation
NASDAQ:MSFTShort
by diegochuw
Neutral Price-Action Analysis (ETH/USD – 15M)📌 Neutral Price-Action Analysis (ETH/USD – 15M) 1. Double-Top Structure The chart highlights a double-top pattern, formed by two peaks around the 3084–3087 area: TOP 1: Price reached approximately 3084 before pulling back. TOP 2: Price returned to the same region near 3087, creating the second high. This shows that price struggled to break above this zone on two attempts. 2. Neckline Zone The lower boundary of the pattern sits near the 3060–3065 area, where price previously found temporary support. This level acts as the midpoint of the structure. 3. EMA Context The EMA 7, 9, and 21 are closely stacked under price, showing short-term momentum earlier in the move. ETH is currently trading just above these EMAs but showing hesitation near the double-top resistance. The EMA 50 at approximately 3048 sits below as a deeper support reference. 4. Price Reaction After touching the second top near 3087, the latest candles show rejection from this zone, indicating reduced strength as price interacts with resistance. The red arrow on the chart simply illustrates a possible continuation idea based on the structure, not a signal. 5. Summary ETH reached the 3084–3087 resistance area twice, forming a double-top pattern on the 15-minute chart. Price is now showing rejection from this zone while holding above the 3060–3065 neckline region, with the EMA 50 near 3048 acting as a broader support reference.
CRYPTO:ETHUSDShort
by Harry_Megat
1
GBPUSD wave 2 pullback? Buy the dip or sell the Rachel rally?Sterling surged over 1% last week on UK budget relief, the so-called "Rachel Rally", but profit-taking kicked in at resistance. With both the BOE and Fed now 90% expected to cut in December, the dollar is under more pressure, making Cable pullbacks attractive buying opportunities. Key drivers: "Rachel Rally" profit-taking after Sterling's best week since August led to double top at 1.3275 resistance. BOE December rate cut priced at 90%, creating short-term headwinds. Fed December cut odds surged to ~90% after ISM Manufacturing fell to 48.2, the ninth straight month of contraction, keeping dollar weak. Both central banks are cutting, but USD is under more pressure right now, supporting GBPUSD on pullbacks. Wave structure : Five-wave leg complete from 1.30 low, now in Wave 2 correction. Key support zone between 38.2% and 61.8% Fibonacci (around 1.3150–1.3130). If this holds, buying the dip for Wave 3 of Wave 3 (or Wave 3 of C) targeting 1.3275, then 1.3315 and higher. Alternative : Losing 1.31 increases risk of continuation lower toward previous low and potentially 1.2847. Looking to buy the GBPUSD dip? Share your Wave 2 entries in the comments and follow for more macro-plus-technicals trade ideas. This content is not directed to residents of the EU or UK. Any opinions, news, research, analyses, prices or other information contained on this website is provided as general market commentary and does not constitute investment advice. ThinkMarkets will not accept liability for any loss or damage including, without limitation, to any loss of profit which may arise directly or indirectly from use of or reliance on such information.
Long
by ThinkMarkets
$BTC 200DMA Date With Destiny & ISM PMI RelationshipIn every prior cycle when CRYPTOCAP:BTC lost the 200DMA it retested it well into the midterm year. Everyone still believed in the 4-year cycle even with this failed relief rally. But all of a sudden this time is supposed to be different 🤓 My base-case is that we do finally see a proper business cycle in 2026. I would give it a 50% probability that CRYPTOCAP:BTC does see a higher price IF that does occur. My hesitation here is that BTC got a higher high in November 2021 with a declining ISM vs March. Additionally, in April 2014 and February 2018 the ISM printed a slightly higher high, but BTC printed a lower high. This is the conundrum ₿itcoin has with the ISM, and part of the Twin Peaks thesis (pinned tweet).
CRYPTO:BTCUSD
by jonnieking
Double Top: The Pattern That Warns You Before the Crash📘 Mastering the Double Top Pattern: A Complete Educational Guide for Traders The Double Top is one of the most powerful and reliable reversal patterns in technical analysis. When understood and applied correctly, it helps traders catch the early phase of a trend reversal — often leading to high-reward opportunities with strong risk control. 1 . Understanding the Structure of a Double Top A Double Top consists of three essential components: 🔸 First Top - Price pushes upward in a strong bullish trend. - It forms a peak at a key resistance zone. - Price then retraces downward → creating the neckline. 🔸 Second Top Price rises again but fails to break above the first peak. This failure indicates: + weakening bullish momentum + growing selling pressure This is the first warning of a potential reversal. 🔸 Neckline Breakout (Confirmation) - When price breaks below the neckline, the pattern is confirmed. - This confirms that buyers have lost control and sellers have taken over. - This is where professional traders begin to look for short opportunities. 2. What the Double Top Really Tells You (Market Psychology) A Double Top is psychology in motion: - Buyers attempt to break resistance twice - The first attempt succeeds (forming Top 1) - The second attempt fails (forming Top 2) - This failure shows exhaustion - Once the neckline breaks → confidence shifts to sellers - A new downtrend is likely to start This pattern is especially powerful after a strong uptrend, because a reversal has more room to move. 3. Requirements for a High-Quality Double Top To filter out fake signals, look for: ✔️ A strong bullish trend before the pattern ✔️ Two tops of similar height ✔️ Second top usually forms with weaker volume ✔️ Clear and decisive neckline breakout ✔️ Retest of the neckline increases probability This helps you avoid low-quality setups and false reversals. 4. How Professional Traders Trade the Double Top 1️⃣ Entry Strategy - The safest and highest-probability entry: SELL on the neckline retest after the breakout. Entering early (at the second top) is risky — no confirmation yet. 2️⃣ Stop Loss Placement SL should be: - above the second top or above the structure that failed - This protects you from false breakouts and liquidity grabs. 3️⃣ Take Profit Strategy To project your target: - Measure the height from the top → neckline - Project the same distance downward - This becomes your TP zone Simple, clear, and effective. 5. Pro Tips to Avoid Traps ⚠️ DO NOT enter just because price forms a second top ⚠️ Wait for the neckline break ⚠️ Watch for decisive bearish candles ⚠️ Combine with: - RSI divergence - Trendline breaks - FVG imbalance - Liquidity sweeps These confluences dramatically increase your win rate. 🧠 Final Thoughts The Double Top is a classic pattern for a reason — it reveals clear market psychology and provides precise entries when used correctly. Mastering it allows you to catch early reversals with confidence and discipline. If this lesson helped you, let me know in the comments 🚀📉📘
OPOFINANCE:XAUUSDEducation
by RexTraderSignal
Anticipate Movement Inside of a Range EnvironmentA large portion of crypto price action does not trend. It ranges. And for many traders, this is where the most capital is lost. A range environment feels simple on the surface price moves between two boundaries, but inside those boundaries, liquidity builds, traps form, and false signals appear constantly. Understanding how ranges behave is a core skill for developing consistency. A range forms when the market fails to create meaningful higher highs or lower lows. Buyers and sellers balance out, and price oscillates between defined support and resistance. This compression is not random. It reflects indecision, accumulation, or distribution depending on the higher-time frame context. Traders who treat a range like a trend are the ones most often punished. The first step is identifying the boundaries. Equal highs at the top of a range and equal lows at the bottom reveal where stops accumulate. These stops become liquidity pools. Price frequently sweeps one side of the range before moving to the other, trapping breakouts and fading momentum traders. A clean sweep is not the breakout; it is the intention-revealing event before direction is chosen. Inside the range, structural signals lose reliability. Traditional trend tools cannot be applied. Instead, focus on behaviour at the edges: rejection wicks, failed breakouts, displacement after a sweep, and reclaim patterns. These reactions show whether a sweep is simply clearing liquidity or if a genuine expansion is developing. Patience is critical. Entering in the middle of the range exposes you to noise, uncertainty, and poor reward-to-risk. The edge comes from waiting at the boundaries where liquidity sits and confirmation appears. A range can persist far longer than expected, so forcing trades inside it leads to frustration and unnecessary losses. The real purpose of studying ranges is not just to trade them but to anticipate what follows. A compression phase often precedes expansion. When liquidity on one side is taken and price breaks structure with intent, the next directional leg becomes far easier to participate in. Ranges are where future trends prepare themselves.
Education
by SamDrnda
8
TESLA IS ENTERING A CRITICAL ZONETesla currently remains in an uptrend while moving inside the existing ascending channel. The most recent reaction came from the trendline, but an important structure has formed above: a clear double top pattern . After the pattern completed, price declined and is now retesting the neckline, which has already acted as resistance. The 50 EMA is also positioned at this same level, adding confluence. According to the mechanics of the double top, the expected downward projection is typically equal to the distance between the top of the pattern and the neckline. That measured move aligns almost perfectly with the lower support zone and the 200 EMA , forming a strong confluence area. Additionally, there is an imbalance inside that lower region, which commonly pulls price back to fill it. RSI has formed a downtrend and is moving toward the 30 level, which supports the likelihood of a continued decline. If price breaks above both the RSI downtrend and the neckline, the move back upward along the channel becomes possible. However, the bearish confirmations remain strong unless a significant positive catalyst invalidates the setup.
NASDAQ:TSLAShort
by Binhuseyn
3
UK100 DOUBLE TOPHey awesome traders! Hope you’re snagging pips. FTSE just printed a clean Double Top—first peak near 9,790, second swing failed beneath it, and price is hovering under the short EL ~9,739.7. This puts sellers in control if we confirm below the neckline. Key Levels Peaks: 9,788–9,790 Short EL: 9,739.7 Mid level: 9,679.8 (0.5) Neckline / Trendline break: 9,571.2 200-SMA: 9,488.3 Measured move T1: ~9,355.7 Trading Plan Aggressive short: Fade the second top / EL 9,739–9,745 on bearish rejection (engulfing/pin). Stop: above 9,795 (beyond tops). TPs: 9,680 → 9,571 → 9,488 → 9,355. Conservative short (confirmation): Wait for a 4H close below 9,571, then sell the retest as resistance. Invalidation: sustained reclaim back above 9,571, or especially above 9,740–9,790.
CAPITALCOM:UK100Short
by TradeChartPatternsLikeThePros
1
Bitcoin looking bearish in the short termBTC is still in the long-term bullish. But in the short term, it has formed a double top and is currently at an area of interest, the point where it could break the neckline of this double top downwards. It has also begun forming what could be the descending channel that drives this bearish move. If the breakout below the neckline does happen, it'll likely move toward the 90k area, which coincidentally also happens to be where a fair value gap is currently waiting to be filled on a 4H. At this point, it would've broken out of the long-term bullish ascending channel and will likely form a structure that suggests reversal of the short-term bearish move, back into the channel to continue the longer-term bullish trend. What do you think? Let me know in the comments.
Short
by zology69
2
Gold Technical Outlook: Breakout or Breakdown Ahead?Market Context Gold recently hit fresh all-time highs near $4,400 in mid-October after dovish comments from the Federal Reserve, but has since paused as traders digest the news. The price is consolidating around the $4,000 area, with bulls and bears locked in a tug-of-war, creating a crucial juncture for gold’s short-term trend. Technical Breakdown • Trend: Gold had been climbing steadily along a rising support trendline , but that line has now been broken . This signals that the recent uptrend may be on hold or reversing in the near term. • Resistances: The chart shows a classic double-top pattern , with peaks around 4,210–4,225 . After retesting this zone and failing, sellers took control. There’s also a minor resistance zone near 4,040 , which capped a recent bounce. In short, bulls must reclaim 4,040 first, a breakout above this would open the path toward 4,210–4,225 . • Support: Key support lies near 3,914 . This level held strong during earlier pullbacks even after the trendline broke. If gold retests 3,914 and holds, it could provide a solid base for buyers, but a decisive break below it would confirm downside continuation. • RSI (Momentum): The 14-period RSI is hovering near 50 , showing a neutral stance. We can observe both bearish divergence (as price formed a double top while RSI made a lower high) and bullish divergence (as RSI formed higher lows while price dipped). This mix of signals means momentum is indecisive , traders should wait for confirmation. What to Watch Next 1. Price Reaction at Key Levels Watch how price reacts around 4,040 and 3,914 . A break and hold above 4,040 could shift short-term momentum bullish, targeting 4,210–4,225 . A rejection or breakdown below 3,914 could trigger further selling pressure. 2. RSI Confirmation A sustained move of RSI above 50 supports bullish momentum, especially if price also rises. Conversely, a drop below 45–40 would reinforce bearish sentiment. If price breaks above the double top and RSI makes a higher high , bearish divergence is invalidated, confirming strength. But if price breaks below support and RSI follows with new lows , the bullish divergence fails, favoring sellers. Summary Gold’s short-term trend depends on how it reacts at these key levels (4,040 and 3,914) . The market is at a decision point, either breakout or breakdown. Combining price structure with RSI confirmation can help traders stay aligned with the next impulsive move. Analysis by @TraderRahulPal | More analysis & educational content on my profile. Disclaimer: This analysis is for educational purposes only and should not be considered financial advice. Trade responsibly with proper risk management.
COMEX:GC1!Long
by TraderRahulPal
1
Bitcoin: A 3 Drives Pattern Signals a Potential Market ReversalBITSTAMP:BTCUSD Bitcoin’s continues to capture the attention as it unfolds into a potentially critical technical formation. The chart suggests that a 3 Drives Pattern — a classic reversal structure — is taking shape, suggesting that the current bullish cycle may be approaching exhaustion. If this pattern completes, the projected move could lead Bitcoin down toward the $50,000 region, implying a 50% price correction from current levels. This pattern is strengthened by bearish divergences on the Relative Strength Index (RSI), which reveal a gradual weakening of buying momentum even as prices have continued to set new highs. Such divergence often precedes significant retracements, signaling that the underlying strength of the uptrend may be fading. A clearer confirmation of short-term weakness emerges through a double top formation, with its neckline currently being tested around $107,270 . A confirmed breakdown below this level would favor a correction of roughly 14% , targeting the $93,000 zone. This move could mark the early stage of a broader bearish sequence consistent with the 3 Drives Pattern, potentially setting the tone for a larger downside continuation. The convergence of these multiple signals — the 3 Drives Pattern, the double top, and the RSI divergence — collectively reinforces the notion that bullish momentum is fading and that the market may be transitioning into a reversal phase. Happy Trading, André
BITSTAMP:BTCUSDShort
by Andre_Cardoso
$BTC Double Top - Business Cycle & Global Liquidity Analysis TWIN PEAKS 🎄🌲 How the Business Cycle Supercharges Liquidity (and Crushes Cycles Many of you may remember my BTC cycle thesis I wrote ~1.5 years ago. It was based solely on technical analysis covering previous cycles and did not take into account macro conditions such as global liquidity and the business cycle. While that has been a guiding light to get me to this point, after further macro analysis, my views have changed a bit. Based on my technical analysis, a price target north of $200k remains for CRYPTOCAP:BTC , but I now believe we will see some sort of a DOUBLE TOP like we did in 2021; this time in mid-December 2025 and late-March / early April 2026. The December 2025 top will fulfill the “4-Year Cycle prophecy” which has been fueled by the current boom in global liquidity. Whereas the March / April 2026 top will come from a booming business cycle (measured by the ISM PMI); something we have yet to see. As you can see in the 2017 and 2021 cycles, the business cycle cues Alt Season. I don’t think we see a real one without it. That’s where people spend the money they made through safer assets such as Gold > Stonks > ₿itcoin etc. We saw Altcoins, NFTs, Sports Cards, Sneakers, Watches, Collectibles etc go parabolic during this time in 2021. And it just so happened that the market for a lot of these high-risk assets topped around that time. Here's a link to a Michael Jordan rookie card in PSA 9 condition that peaked around February 2021 right before the business cycle topped. www.psacard.com I think Altcoins went on for a bit longer after the business cycle topped because they were native on-chain and had less friction to transact (crime season anyone?). NFTs saw sustained speculation because of the novelty and innovation they were bringing to the space. NFTs should act more like traditional risk assets this time around, and top slightly after the business cycle. THE FURTHER WE ARE IN THE BUSINESS CYCLE, THE FASTER LIQUIDITY REACHES RISK ASSETS. Think about it… everyone and their mother are making a ton of money from a booming business cycle ie hairdressers, uber drivers, personal trainers etc and dumb money finds high-risk assets near instantly. We see this with an uptick in google searches, youtube views etc. This is why global liquidity with a 10-12 week lead overshoots cycle tops in the past. An immense amount of Global QE in 2021 created an outlier for a continued pump in liquidity, even after the business cycle topped. Then in the bear market, liquidity deviates from risk assets again as money moves back to safe havens first such as GOLD, which is a near 1:1 injection, and we see ₿itcoin lag by 10-12 weeks. We should continue to see large caps do well for the remainder of the year as money slowly rotates out of BTC into ETH, SOL, BNB etc, but small caps don’t start to outperform until the business cycle starts convincingly rising well above 50. Alternative investments such as sports cards are starting to see a similar rotation. Michael Jordan is the ₿itcoin of sports cards, and many of his cards are well above 2021 all-time highs. Other high-end cards from GOATs such as Tom Brady, Mickey Mantle, Wayne Gretzky etc continue to shatter prior records. NFTs are also starting to see a resurgence with high-end collections such as Crypto Punks, X-Copy etc. I’m not completely sure if the first or second top will be higher for CRYPTOCAP:BTC yet, but I’m leaning towards the first one in December. The aforementioned riskier assets should get the lion’s share of business cycle capital in March / April. At this nexus we will see the Treasury General Account refill suck liquidity out of markets due to tax season. TGA refills have marked previous tops in 2017 and 2021, so I see no reason for this time to be different. Yes, this will be a much shorter business cycle, which is caused by a historic amount of money printing during the pandemic. The outcome left the US economy in a high-inflation / high-interest rate environment. The business cycle represents Main Street, and it is clear that the aftermath of the pandemic has crushed middle and lower income households. ~FIN~ JK POST REFERENCES: -The 4-Year Boom and Bust Cycle is by design -Synchronized Bear Market Bottoms -If you want to dive deeper into the current macro landscape, you should definitely read the playbook I wrote ~10 months ago. It’s been playing out near-perfectly.
CRYPTOCAP:BTCLong
by jonnieking
4
Gold breaks records and tops out: Where next?Gold achieved a historic breakthrough to $3,759 per ounce, potentially driven by an unusual "barbell strategy" where investors simultaneously bought risk assets while hedging against systemic risks. On the one hand, continued expectations for two additional rate cuts by year-end supported non-yielding assets. On the other hand, political uncertainty increases as Trump prepares to meet with lawmakers on funding proposals. The probability of a Gov shutdown approaches 70% by October 1st, which would force the FOMC into a 'blind' meeting in October. Technicals The short-term setup shows a double top formation at $3,759, suggesting potential consolidation rather than immediate continuation. Resistance Levels : $3,800 is a critical resistance, both a Fibonacci extension cluster and a psychological level Support Levels : Immediate support at $3,740 (breakout confirmation level) Secondary support at $3,700-$3,730 (previous consolidation zone) Deeper pullback potential to $3,673 (61.8% Fibonacci retracement) Wave Structure : Elliott waves suggest completion of a potential Wave 3, with consolidation expected before a possible fifth wave extension toward $3,785-$3,800 Forward Outlook The setup favours consolidation over the remainder of the week, with key events including Fed Chair Powell's speech and Friday's PCE inflation data serving as potential catalysts for the next directional move. The momentum divergences suggest limited downside risk from current levels, making any pullback toward $3,700-$3,740 a potential buying opportunity for the anticipated final leg higher toward the $3,800 resistance zone. Risk management remains crucial given the proximity to potential reversal levels and the unusual nature of gold's correlation with equity strength. This content is not directed to residents of the EU or UK. Any opinions, news, research, analyses, prices or other information contained on this website is provided as general market commentary and does not constitute investment advice. ThinkMarkets will not accept liability for any loss or damage including, without limitation, to any loss of profit which may arise directly or indirectly from use of or reliance on such information.
THINKMARKETS:XAUUSDLong
by ThinkMarkets
Double Top formation on AUDCAD - Risky, okay?Price made a strong rally on AUDCAD, climbing aggressively. But now, we’re spotting a possible Double Top formation, two peaks at roughly the same level. At first glance, this looks like a bearish setup. But here’s the caution: in the context of such a powerful uptrend, a Double Top can be tricky. Sometimes, it’s just a pause before buyers push even higher. We can say that the neckline broke rather cleanly, with strong confirmation, but I don't see that much conviction yet from the sellers. Buyers could come back, and the uptrend continues. This is what makes it risky. Above, there’s a strong resistance zone, and that’s exactly where price could be heading next. So, don’t jump in too early. Because fading a strong trend is always risky business… or should I say risky biscuit?
Short
by TrendDiva
15
XAUUSD Bears Hold the Line at 3650 zone – Next Stop 3570?In yesterday’s analysis, I mentioned that in my view, OANDA:XAUUSD ’s correction is not yet complete and that we could be inside an unfolding ABC-type structure. I also suggested that the 3650 zone should be the main focus for bears. Indeed, price rallied into that zone, consolidated in a small distribution phase, and then started to roll back down again. At the time of writing, gold is trading at 3632, after retesting the 3623 recent low, which now acts as short-term support. Looking forward, my idea remains unchanged: I expect another leg down, with 3570 as the next major target. For now, the 3650–3660 area acts as a strong ceiling, and if we look closely, one could even argue a potential double top is forming—if we discount the 3674 spike that marked the ATH. On the other hand, a stabilization above 3660 would invalidate this bearish scenario and open the door for a new ATH. 🚀
OANDA:XAUUSDShort
by Mihai_Iacob
20
Looking for Zuari's Golden Zone - Fib RetracementZuari's fib retracement on the daily chart on the run up from 200 to 390 shows a clear pullback to 38.2% followed by a failed attempt to break 100% in a seeming double top formation around 390, invalidating immediate bullish momentum. Daily Macd and RSI look weak with bearish divergences forming against PA, denoted with green brush lines showing both indicators with lower highs against price's equal high. A retest of the golden zone (61.8% to 78.6%) puts us between roughly 240 and 275, which should offer a high probability zone for accumulation and eventually a bounce. Look out for confluences of major fib levels with 1d 50ma, 99ma and 200ma. 61.8% also has a horizontal confluence with the Dec 3rd peak, and 78.6% has horizontal confluence with April 24th peak, also potentially infleuntial to support levels.
NSE:ZUARI
by Crabdabs
2