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2026-05-15

Why the second peak being higher means it is not a double top

A double top is not just two highs. It is two highs at the same level, with a rejection down that holds.

When the second peak pushes higher than the first, the market is telling you something different. It is not distribution at a ceiling. It is accumulation into a breakout. The buyers who were stopped out at the first peak are now being proven wrong, and the sellers who shorted the first peak are underwater.

The simulator teaches this by generating both cases side by side. In one chart, the second peak equals the first and the reversal bar is strong. In the other, the second peak is higher and the pullback is shallow. The bot reads the difference and explains why one is a short and the other is a continuation.

If you call every two-push structure a double top, you will short breakouts for the rest of your career. Learn the difference here first.

Written by Tommy & Kiet. Education only, not financial advice.