Breakouts are confirmed when they are accompanied by an increase in volume. If prices move all the way through the triangle to the apex, a breakout is unlikely. The following chart shows Boeing and a descending triangle. Note the strong downside breakout on increased volume. Double Tops and Bottoms A double top occurs when prices rise to a resistance level on significant volume, retreat, and subsequently return to the resistance level on decreased volume.
Prices then decline marking the beginning of a new down-trend.
A double bottom has the same characteristics as a double top except it is upside-down. The following chart shows Caterpillar and a double bottom pattern. Contact Copyright 2000 Equis International.