Double Top (Reversal)Pattern For Stock Analysis
It is a major reversal pattern used by many technical analysis to judge the future stock movement.It looks like formation of letter “M” ,where first a stock rises then drops and then another rise with same level and after it the fall.It indicates the sell signal,and it is better to get out of that stock at first signal. But i would suggest people to confirm it with other technical tools.As many people hurry to sell stock on first top and before second top but there might be more uptrend in that stock.But it is wisely suggested that a person should exit as if the movement of stock is not supported by volume.
If the peaks are too near,then they could just represent normal resistance rather than a lasting change in the supply/demand picture.Which means you will be taking action on deceptive analysis.
I would suggest to go through these article
http://stockcharts.com/school/doku.php?id=chart_school:chart_analysis:chart_patterns:double_top
Also have a look at the shushi roll from Mark Fisher. This pattern was named a sushi roll by Mark Fisher in his book, “The Logical Trader”.
http://www.investopedia.com/articles/technical/04/031004.asp