Double Top Formation is one of the most reliable indications showing that a parity resuming its upward trend is changing in the direction of decline. The parity comes to a point during the uptrend where it is no longer able to withstand sales pressures and begins to return. Here is the first leg of the dual peak is formed. Savings owners who see the trend changes its direction and who are in a buying direction position start to quickly close their positions. This takes the parity down for a while. However, when these closures are taken for profit, the pair starts to rise again by gaining strength. Thus, a second foot is reached and the formation of a double peak begins to form. The strong resistance point results in the pair not being able to hold down, and a slowdown starts. The parity, which exceeds the neckline, in particular, proceeds to enhance its strength by adding new sales pressure to its strength.
When and how should we invest when we see the double top formation? The double top generally forms a distinct neckline. The following is shown in the sample graphs drawn with a green line. It would be the right move to enter the sale process slightly below the neckline.
Example dual peak formations: