Investor Glossary-double topInvestor Glossary-double topInvestor Glossary-double topInvestor Glossary-double topInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Double Top

The HTML to link to this page
 

Double top is a term used by technical analysts to describe a chart pattern which looks like a capital letter "M". In a double top a stock rises to a point, then falls, then rises again to the same level as the first peak, and then drops once again. The two high points (the double top) represent a resistance level. Often a stock has difficulty breaking through the resistance level defined by a double top. If a stock does break through a double top resistance level it is generally considered a bullish signal. The opposite of a double top is a double bottom (looks like a "W"), a support level which technical analysts believe difficult for a stock to penetrate. Similar to a double top, if a stock breaks below a double bottom support level it is considered bearish.



Rate this double top definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: quality assurance, minority interest, command economy, Zero Cost Collar, APR, annual return, Key Rate Duration, average price per share, ex-dividend date, phantom income, risk management, in escrow, EBITDA, diluted share, option premium, cancelled check, covered put, required rate of return, labor relations, VIX, balance sheet, current ratio, LIBOR, real GDP, 401a, debt service coverage, 1031 exchange, margin rate, 144a, liquidity ratio, class C shares, wholly-owned subsidiary, deferred tax, irrevocable trust, 1035 exchange, stock market close, deferred revenue, implied volatility, reverse mortgage, retained earnings, dividends payable, inflation, stock split, open position, limit order, ex-dividend, FICO score, FTSE, per diem


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use