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


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