Define: Double Top

UK Accounting Glossary

Definition: Double Top



Advertisement



Full Definition of Double Top


Double top is a term used by technical analysts to describe a chart pattern which looks like a capital letter “M”. In a double top, a stock rises to a point, then falls, then rises again to the same level as the first peak, and then drops once again. The two high points (the double top) represent a resistance level. Often a stock has difficulty breaking through the resistance level defined by a double top. If a stock does break through a double top resistance level it is generally considered a bullish signal. The opposite of a double top is a double bottom (looks like a “W”), a support level which technical analysts believe difficult for a stock to penetrate. Similar to a double top, if a stock breaks below a double bottom support level it is considered bearish.


Advertisement




Cite Term


To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
https://payrollheaven.com/define/double-top/
Modern Language Association (MLA):
Double Top. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. February 29, 2020 https://payrollheaven.com/define/double-top/.
Chicago Manual of Style (CMS):
Double Top. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/double-top/ (accessed: February 29, 2020).
American Psychological Association (APA):
Double Top. PayrollHeaven.com. Retrieved February 29, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/double-top/

Definition Sources


Definitions for Double Top are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • BusinessDictionary.com
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 9th February 2020.