Double Bottom Pattern
A bullish reversal pattern where price reaches a support level twice, forming a "W" shape, signaling potential trend reversal upward.
Quick Answer
A bullish reversal pattern where price reaches a support level twice, forming a "W" shape, signaling potential trend reversal upward.
What Is the Double Bottom Pattern?
The Double Bottom is a bullish reversal pattern that forms after a downtrend. Price reaches a low, bounces, then returns to approximately the same low before rallying. The pattern looks like the letter "W" and is confirmed when price breaks above the resistance level (neckline) formed by the bounce.
How the Double Bottom Forms
- 1Price reaches a new low (first bottom)
- 2Price bounces to form a resistance level
- 3Price drops to approximately the same low (second bottom)
- 4Price breaks above the resistance/neckline
How to Confirm the Pattern
Price Target Calculation
Measure the height from the bottoms to the neckline, then project upward from the neckline break.
Best Timeframes for Double Bottom
How to Trade the Double Bottom
- →Identify trend reversals at support
- →Set bullish trade targets
- →Place stops below the double bottom
- →Confirm support levels
Common Mistakes to Avoid
Detect Double Bottom Automatically
VaultCharts automatically detects Double Bottom patterns on your charts. No manual analysis needed - the pattern is highlighted with entry zones and targets.