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Double Tops is a bearish trend reversal pattern that often marks the end of an uptrend and the start of a down trend. It consists of two consecutive peaks that reach a resistance level at more or less the same high value, with a valley separating the two peaks. The low of the valley, which forms a neckline, is important for price projection purposes, but the shape that the peaks take is not important.

Look at XAUUSD H4 double tops pattern. Price reaches the first peak on increased volume then falls down the valley with low volume. Another attempt on the rally up to the second peak .Then the selling volume pushes the price lower and lower.

To learn more about the specific Double Tops pattern that you've spotted, keep an eye out for the following characteristics:

●Distance between peaks should not be too small - time frame dependent.

● Confirm neckline/support price level.

●Use other technical indicators to support double top bearish signal, such as moving averages and oscillators.

●Two distinct peaks of similar width and height.

Traders have two entry signals to sell short with this double tops. The first is given when the price fails to break the previous resistance level at the first peak. However, this is a tentative entry as the price may rebound before reaching the support level between the two peaks and signal the continuation of the uptrend. The second entry signal is the more reliable signal. It is given when the previous support level created on the retracement from the first peak is violated. This should preferably occur on higher volume as a drop in volume may indicate a false break. Also you can enter a short position when the price break out neckline. And stop loss should be set at the peak line for insurance.

Double Bottoms