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DAY 11 โ DOUBLE TOP AND DOUBLE BOTTOM
The double top and double bottom are reversal patterns, meaning that the price attempted to break a zone twice and failed.
It is a structure based on movement blocks:
Rises โ stops โ corrects โ tries again.
If it fails again, the market usually changes direction.
Basic types
โข Double top
The price rises twice to the same zone.
Indicates buyer weakness.
Usually anticipates a drop.
โข Double bottom
The price falls twice to the same zone.
Indicates seller weakness.
Usually anticipates a rise.
What to observe?
โ Two clear attempts in the same zone
โ Similar blocks
โ Visible rejections
โ Marked zone
Key idea
โ It's not the touch that matters
โ It's the rejection
โ Confirmation usually comes when the price breaks the intermediate level