Doubles tops and double bottoms

The preceding figures are all related to trend lines so as to
delimit them. Still, other figures exist, called formal figures, which
are defined by their sole appearance.

They then are reversal figures: the stock trend is
reversing on these levels. The most significant of these figures is the
double top (on the upside) and the double bottom (on the
downside). As shown below, these formations correspond to two
consecutive tops (or bottoms).

These figures are often characterized by lower volumes
during the second extreme, showing the decreasing interest of investors and
the expectation of a trend reversal.

In terms of target, it can be found by moving the
height of the double top (or bottom) figure itself at the level of the
end of the figure (cf. graph).