Shape and Characteristics
The line connecting the level of the trough between the two highs is called the "neckline." Once the second high forms and the price breaks below the neckline, the double top pattern is considered complete, and some view this as a point where a shift toward a downtrend becomes more likely to be recognized.
How to Read It, and What to Watch Out For
A double top is only one pattern identified from past chart shapes — its appearance does not guarantee that the price will definitely fall afterward. There are also cases where the price forms two similar highs and then extends further upward, so it is common to check volume and other indicators together before drawing conclusions.