**Double Needle Top is a bearish signal, but not an absolute one.** The financial markets are never 100% certain; it all depends on how you interpret this pattern.

**Volume is the first clue.** When the second needle appears, if the trading volume significantly shrinks, it indicates that the momentum to follow the trend is weakening, and the probability of a decline is quite high. Conversely, if the second needle is accompanied by huge volume but still cannot break through, this is called "volume expansion with stagnation"—a typical sign of main players distributing holdings, which warrants increased caution.

**Market environment changes everything.** In a bear market or sideways trading, this signal is extremely reliable and likely indicates a decline. But in a bull market, it's different. Some main players may intentionally create this pattern to shake out retail investors. If the price quickly recovers and hits new highs afterward, it may just be a short-term correction, not a reversal.

**The neckline is the final confirmation step.** Some traders draw a neckline connecting the lows between the two needles. When the price breaks below this line, it’s a true confirmation signal—time to exit.

**How to operate safely?** If you're currently holding a position in profit, it’s a big mistake to jump in immediately upon seeing this pattern. Taking profits is usually the wiser choice; securing gains is always more valuable than greedily chasing the last wave of increase. If you're more aggressive and believe this is a shakeout, set the lowest point of the two needles as your stop-loss. Once hit, exit immediately.

**Core advice:** Treat the double needle top as a bearish signal by default, and adopt a strategy of reducing or avoiding positions and observing. Don’t be tempted by short-term gains; many losses come from this kind of behavior.