Chart pattern · Reversal · Bearish
What is it, in one line
Two peaks at roughly the same level, separated by a moderate trough.
Bearish · Reversal · verdict: Traditional claim, not yet measured here
Two peaks at roughly the same level, separated by a moderate trough.
Method
Conventional target: A break below the trough projects a decline equal to the peak-to-trough distance.
Invalidated by: A close back above either peak invalidates the pattern.
The two most recent confirmed swing highs sit within a tolerance band of one another, and the swing low between them is at least minSepAtr below both. The tradition reads the second failure at the same level as demand exhausting.
The traditional claim
Read as a bearish reversal once price closes below the trough between the two peaks.
How this detection is wrong
Two highs at the same level are not rare; the trough depth floor is what separates a double top from a flat range. A pattern with no meaningful trough is a rectangle, not a reversal.
Published so the count can be reproduced. Every figure below is a parameter of the rule, not a preference: change one and the occurrence count changes with it.
| Parameter | Meaning | Default |
|---|---|---|
| pivotLeft | bars to the left of a swing | 3 |
| pivotRight | bars to the right before a swing is confirmed | 3 |
| lookback | bars searched for the swings | 120 |
| atrPeriod | bars of ATR used to size everything below | 14 |
| flatTol | how level two points must be | 0.02 |
| minSepAtr | separation required between swings, in ATR | 1 |
These share enough geometry that a detector can return more than one of them on the same bar. The engine reports every match rather than picking a winner.
Every pair on the site that can be mistaken for another, and what separates each: the look-alikes index.
The two most recent confirmed swing highs sit within a tolerance band of one another, and the swing low between them is at least minSepAtr below both. The tradition reads the second failure at the same level as demand exhausting. The detector also requires a prior uptrend, so the same shape in the wrong context is not counted.
It is read as bearish. Read as a bearish reversal once price closes below the trough between the two peaks.
Two highs at the same level are not rare; the trough depth floor is what separates a double top from a flat range. A pattern with no meaningful trough is a rectangle, not a reversal.
As an executable rule over open, high, low and close, with 6 named parameters — including bars to the left of a swing 3, bars to the right before a swing is confirmed 3, bars searched for the swings 120 — all published on this page so the count can be reproduced. Strict and loose variants are defined as well, so the sensitivity of the count to those thresholds is visible rather than assumed.
Measurement pending re-run
No hit rate is published here yet. The run that would supply one was computed on engine ca6d9e36c81c; the engine is now cfb08765de7c. Its candlestick rows included the still-forming bar, and it predates the chart formations entirely, so those figures have been withdrawn rather than published with a caveat. The definition above is unaffected: it is what the detector tests, and no re-run changes it.
Same shape, opposite reading
The shapes are close, and the prior trend is what decides which one fired: this rule requires a preceding uptrend, its mirror a preceding downtrend.
Double Bottom: Two troughs at approximately the same level, separated by a peak.