A much more common reversal pattern is the double top or bottom. Next to the head and shoulders, it is the most frequently seen and the most easily recognized .
5.5b show both the top and bottom variety. For obvious reasons, the top is often referred to as an "M" and the bottom as a "W." The general characteristics of a double top are similar to that of the head and shoulders and triple top except that only two peaks appear instead of three. The volume pattern is similar as is the measuring rule.
In an uptrend (as shown in Figure 5.5a), the market sets a new high at point A, usually on increased volume, and then declines to point B on declining volume. So far, everything is pro­ceeding as expected in a normal uptrend. The next rally to point C, however, is unable to penetrate the previous peak at A on a closing basis and begins to fall back again. A potential double top has been set up. I use the word "potential" because, as is the case with all reversal patterns, the reversal is not complete until the previous support point at B is violated on a closing basis. Until that happens, prices could be in just a sideways consolidation phase, preparing for a resumption of the original uptrend.
The ideal top has two prominent peaks at about the same price level. Volume tends to be heavier during the first peak and lighter on the second. A decisive close under the middle trough at point B on heavier volume completes the pattern and signals a reversal of trend to the downside. A return move to the breakout point is not unusual prior to resumption of the downtrend.Measuring Technique for the Double Top
The measuring technique for the double top is the height of the pattern projected from the breakdown point (the point where the middle trough at point B is broken). As an alternative, measure the height of the first downleg (points A to B) and project that length downward from the middle trough at point B. Measurements at the bottom are the same, but in the other direction