The M top — also called a double top — is the bearish mirror of the W bottom and one of the most common reversal patterns. Price rallies to a resistance level, pulls back, then retests that resistance and fails. The two highs create the M shape.
The first high shows buyers pushed price into a resistance zone. The pullback shows sellers defending. The second test of that resistance is the moment of truth — if price cannot break through again, it confirms that buyers are exhausted and sellers are in control. The neckline break is when the pattern is confirmed and the reversal is underway.
Key insight: The second top on declining volume is a powerful signal. If buyers cannot push volume on a second attempt at the highs, it suggests the demand is fading. That divergence is one of the clearest warnings the M top will follow through.
The other half is what’s happening in your head when you’re in the trade. Fear, ego, revenge trading, breaking your own stops — that’s where most accounts actually lose money. Not bad setups.