Double Bottom

A double bottom is a reversal pattern consisting of two price troughs: the market declines to a new low, retraces, then falls again to the approximate price level of the first trough and retraces again.  The implication is that by failing to break below the first price low, the market is hitting support and the down trend (especially if it has been an extended one) could reverse.  A double bottom usually looks like the letter “W”.

A double bottom is the opposite of a double top.

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