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bullish Signal
Double Bottom
A double bottom is a major reversal pattern that occurs after an extended downtrend. It resembles the letter "W" and shows two distinct lows reaching a similar level.
How to Trade
The pattern is confirmed when the price breaks above the "neckline" (the peak between the two bottoms). Many traders wait for a retest of the neckline before entering.
Market Psychology
The first bottom indicates that buyers are stepping in at a support level. The second bottom confirms that the support is holding and that sellers are exhausted, marking a transition from bearish to bullish.
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Double Top
Technical Diagram
This visual represents the ideal candle formation and breakout points for the Double Bottom pattern.