Is Double Tops Pattern Bullish or Bearish?

Double Tops Trading Pattern

Double Tops Chart Pattern is a Bearish XAUUSD Pattern - Double Tops Pattern is a Bearish Gold Trading Signal Pattern

Summary:

• Double tops xauusd chart pattern forms after an extended move upward - upward gold trend
• Double tops xauusd pattern signal indicates that there will be a reversal in the xauusd market trend
• We sell when the price breaks-out below neck-line: as described on the xauusd trading example illustrated and explained below.

Gold Trade a Double Tops Chart Pattern?

Double tops xauusd chart pattern look like an MShape pattern, the best reversal gold trading signal from the double top chart pattern is where the second top is lower than the first top as shown below:

This means that the reversal gold signal can be confirmed by drawing a downward gold trend line as shown below. If a trader opens a sell gold trade using this double tops reversal gold signal the stop loss will be placed just above this downwards trend line.

Technical Analysis of Double Tops Pattern - Examples of Double Top Chart Pattern