, hence the name. In the process of continuous rise, when the stock price rises to a certain price level

, the trading volume increases significantly and the stock price begins to turn around and fall back.

When it falls to a certain position, the stock price rebounds and rises again, but the trading volume shrinks slightly compared with the first peak. It rebounds to near the previous high and then falls for the second time, and falls below the first drop. At the low point, the stock price moves like an M, forming a double top.

Characteristics:

The double top pattern is formed after the stock price rises to a certain stage. The pattern appears with two peaks, becoming the left wing and the right wing respectively. Theoretically, the two high points of a double top should be basically the same, but in actual K-line trends, the left front is generally slightly lower than the right front, and the difference is about 3%. In addition, a falling low point is formed at the first peak (left wing), and a horizontal line is drawn at this position to form what is usually called a neckline

When the stock price rises again, falls back, and falls below this The horizontal line (neckline) supports the formation of a double top pattern. During the formation of the double top, the trading volume of the left front is larger, followed by the trading volume of the right front. The declining trading volume shows that during the second rebound of the stock price, the intensity of funds chasing the increase is getting weaker and weaker, and the stock price has risen to the end. After the double top pattern is formed,

the stock price will often show a counter-pull trend during the decline, but the counter-pull force is not strong.

The neckline position constitutes strong resistance. Double bottom,

refers to when the market is down, after a relatively long process, some bottom forms will appear on the K-line chart

Double bottom is a kind of bottom form. This form forms Like the letter "W"

, once the bottom pattern is formed, it will rise soon. This is a good time for investors to enter the market.

Time to intervene in the double bottom pattern: The stock price breaks through the neckline of the double bottom pattern upwards and then pulls back to confirm. When turning upward, you must increase the volume

This is the best time to intervene.

The upward strength of the double bottom breakthrough: The price difference from the bottom price to the neckline of the double bottom form is often the room for the stock price to rise after it breaks through the neckline.