Double top

(redirected from double tops)
Also found in: Dictionary.
Related to double tops: triple top

Double top

A term used in technical analysis to refer to the rise of a stock's price, a drop, and then a rise back to the same level as the original rise. The pattern looks like the letter M. In technical analysis, this pattern is interpreted negatively suggesting that there is some resistance level (top of the M) whereby the stock can't go higher.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Double Top

A situation in which a security's price peaks, drops back down, then peaks again at the same price as before. For example, a stock may rise to $30 per share, drop to $27, then rise back to $30. A double top is useful in identifying a resistance level, which is a price above which a security has difficulty rising. This, in turn, can be helpful in finding buy signals and sell signals.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

double top

click for a larger image
double top
In technical analysis, a chart formation indicating stock price resistance level and characterized by a stock price reaching a single high price on two different occasions. The price level represented by the double top becomes a resistance level through which the stock will later have difficulty breaking below. Compare double bottom.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

Double top.

Double top is a term that technical analysts use to describe a stock price pattern that, when depicted on a chart, shows two gains to the same dollar level separated by a price drop.

For example, if a stock that had been trading at about $28 a share rose to $35, dropped back to trade at about $28 for several weeks, and then rose to $35 again, analysts would identify $35 as a double top.

An analyst observing this pattern might conclude that investors were comfortable paying $35 for the stock, and that the price might not rise above that level in the near term. In technical terms, the analyst would say that there was resistance above that price. However, there's no way to predict whether the price would in fact remain at $35 or gain value and hit new a high.

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
Mentioned in ?
References in periodicals archive ?
Smith then missed two more before Barney took out double tops.
But he missed double tops to take the match - and Barney stepped up for a 96 finish to stay in it.
"It was a really hard game but I produced the right finishes at the right time," said Wade, who hit eight of his nine attempts at double top during the game.
But the Watford man landed double top in the fourth to send the match its full distance.
His opponent took a surprise 2-1 lead with a perfect single dart for double top but Anderson showed his class by scraping double one to level.
The second seed then followed up with a superb 117 finish, completed on double tops, racing ahead in the next leg but missing two darts for double eight before making sure at her next visit.
Anderson had chances to make it five wins out of five in his debut season but missed two shots at double top in the 13th leg to let Taylor secure at least a draw.
2 DOUBLE TOPS: Moroccan duo Youssef Chippo and Moustapha Hadji celebrate City's six-points-in-four-days sequence.
But manager Carlo Ancelotti doesn't care how many they win by so long as the Blues are double tops by five o'clock this afternoon.