Trading
Charts 101CandlesticksIndicatorsRisk managementAll chart patternsHead and shouldersInverse head and shouldersDouble topDouble bottomAscending triangleDescending triangleBull flagBear flagCup and handleFalling wedgeRising wedgeSupport and resistanceTriple topTriple bottomSymmetrical triangleRounding bottomPennantRectangleAscending channelDescending channelBroadening formationGolden crossDeath crossBart patternWyckoff accumulationWyckoff distributionWhat moves marketsTradingViewMarket cap vs price
The short answer
Two attempts at the same high, both rejected.
What you are looking at
Price hits a level, falls back, rallies to almost exactly the same level, and fails again. The low between them is the trigger line.
How traders act on it
Traders wait for a close below the middle low. The measured move is the height of the pattern projected downward.
Closes, not touches
Wait for a close beyond the level, not a touch. Intraday spikes through a level that reverse before the close are extremely common, and they exist partly because so many stops sit just beyond.When it fails
A third push that clears both highs turns the pattern into a breakout instead.
Failure is normal and it is not a problem, provided you decided your invalidation level before entering and sized the position so that being wrong is survivable. See risk management.
Context that changes the odds
| Factor | Improves the setup | Weakens it |
|---|---|---|
| Higher timeframe trend | Pattern agrees with the daily or weekly direction | Pattern fights the larger trend |
| Volume | Expands on the breakout | Breakout happens on thin volume |
| Duration | Formed over many candles | Formed over three or four candles, which is mostly noise |
| Level confluence | Trigger sits at a well tested level | Trigger sits in empty space with no history |
| Market conditions | Trending, orderly market | Choppy range, where nearly every pattern fails |
Other patterns
Head and shouldersInverse head and shouldersDouble bottomAscending triangleDescending triangleBull flagBear flagCup and handle
Common questions
How close do the two peaks have to be?
Within a couple of percent is typical. The point is that price reached the same area twice and was rejected both times, so the exact tick matters much less than the rejection.
Is a double top always bearish?
No. It is a failed attempt at a level, and levels get taken on the third or fourth try often enough that the pattern only means anything once the support between the peaks actually breaks.
Where to go next
All 26 patternsThe full set with diagrams.Risk managementSizing and stops.CandlesticksThe building blocks.
Practice spotting these
We go through live charts together and separate the real setups from the shapes your brain wants to see. That second skill is the harder one.