double top investment & finance definition

A chart pattern identified by technical analysis that represents a period during which prices have risen and have remained elevated, followed by a dip, succeeded by another rising top, and then another dip, which creates the appearance of twin peaks. In this pattern, prices are unable to break through resistance, or a ceiling, to move higher. When technical analysts see a double top they say it indicates a reversal of a price trend because prices tried to move higher and failed and will be moving lower. A double top is the inverse of a double bottom.