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Chapter 4. The Basics of Technical Analy... > Double and Triple Tops and Bottoms

Double and Triple Tops and Bottoms

Double Tops and Triple Tops

A Double Top is where a high is reached twice before dropping down. In logical terms, the chart is telling us that the (stock) price did not have the strength to rise through a previous high. This is interpreted as weakness and imminent decline in the price is likely.

Let’s take a look at our NASDAQ chart again because it’s the Double Top with the peaks in mid-July and the end of August that is screaming at us as we look at the chart:


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