FTB-C000660 / Evidence concept

Double Top–Bottom Polarity

Double Top–Bottom Polarity is the opposite neckline direction and prior-trend polarity of double tops versus double bottoms.

Advanced 1 linked topicEvidence-reviewed

Definitions

In plain terms

Top candidates break downward after a rise; bottom candidates break upward after a decline.

Technical

Top confirmation uses close < neckline and retracement from high to trough; bottom confirmation uses close > neckline and retracement from low to peak.

Scope

Polarity is a contract distinction, not a claim that one direction is more profitable.

Examples

  • A reviewer computes Double Top–Bottom Polarity on a deterministic close fixture and checks pivot timing, threshold equality, neckline behavior, and rejection diagnostics before publication.

Common misconceptions

  • Polarity is a contract distinction, not a claim that one direction is more profitable.

Concept relationships

Prerequisites

Related

Where this concept is used

Evidence and governance

  1. Members' Guide to 2021 Refresher Readings CFA Institute · first party methodology

    Supports: preferred label, short definition, technical definition, variant distinction

    Limits: The curriculum does not prescribe this package's pivot window, numeric thresholds, causal state machine, or performance claim.

  2. Foundations of Technical Analysis: Computational Algorithms, Statistical Inference, and Empirical Implementation Lo, Mamaysky, and Wang · first party technical publication

    Supports: preferred label, short definition, technical definition, variant distinction

    Limits: The paper's smoothing, sample, and empirical design are not copied into this package and do not validate its thresholds.

  3. Pine Script repainting concepts TradingView · official platform documentation

    Supports: preferred label, short definition, technical definition, variant distinction

    Limits: Platform display behavior does not establish financial usefulness or predictive value.

  4. scipy.signal.find_peaks SciPy · first party technical publication

    Supports: preferred label, short definition, technical definition, variant distinction

    Limits: This retrospective signal function is not itself a causal OHLC pivot detector.

  5. Pine Script pivot techniques TradingView · official platform documentation

    Supports: preferred label, short definition, technical definition, variant distinction

    Limits: The package freezes its own equality, separation, and OHLC policies rather than claiming one universal pivot definition.

  6. Zig Zag indicator QuantConnect · official platform documentation

    Supports: preferred label, short definition, technical definition, variant distinction

    Limits: This package selects a close-only percentage-reversal variant and documents the difference.

  7. LEAN ZigZag source QuantConnect · first party technical publication

    Supports: preferred label, short definition, technical definition, variant distinction

    Limits: A maintained implementation is evidence for one convention, not a universal market rule.

Reviewed by
fintech-builder-batch-012
Last reviewed
2026-08-10
Next review
2027-08-10
Record status
evidence reviewed

This record is evidence-reviewed and readable, but not yet promoted to published — it is served noindex,follow and excluded from the sitemap.

Written by

Fintech engineer building market-data and financial systems, and the author of every article, glossary record, and reference implementation on The Fintech Builder.