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double top

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Financial Dictionary

Double Top

A term used in technical analysis to describe the rise of a stock, a drop, another rise to the same level as the original rise, and finally another drop.

Investopedia Commentary

The double top looks like the letter M. The twice touched high is considered a resistance level.

Related Links

Price Patterns - Part 4
Market Reversals And How To Spot Them

See also: Double Bottom

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Online Stock Charts
Utilize Innovative Tools from optionsXpress. Start Trading Today!
www.optionsXpress.com
Tops Double
Find Tops Double at Target. Shop and Save at Target.com.
www.Target.com
Financial Dictionary

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 by David L. Scott.
Copyright © 2003. Published by Houghton Mifflin.
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