10000 Elephants

Double Top and Double Bottom

A Double Top formation is a setup to watch for in a bull market. When a stock forms a double top and the price moves above the two tops, this is an indication that the price will likely move higher.

A Double Bottom is a formation to watch for in a bear market. As the double bottom forms, and the price breaks through the line of resistance (shown in green) it is very likely that the stock price will continue to fall.