Bearish — M◐ Heuristic
◆ The PatternTwo peaks at the same level — the "M" formation
The Double Top forms when price hits resistance twice and fails to break through. The two peaks form an "M" shape. Breakdown below the trough between peaks (the neckline) confirms the bearish reversal.
Target = Neckline − (Peak − Neckline)
The two peaks don't need to be identical — a difference of ~3% is acceptable. Time between peaks varies from weeks to months.
// Double Top — M formation
Key insight: The second peak often shows lower volume than the first — a sign that buying enthusiasm is fading even though price reaches the same level.
Pattern bridge: Two failed attempts at the same level — like a ReLU-clipped activation hitting a ceiling. In statistics, repeated failed tests at the same significance level tell you the effect isn’t there.