📊 Double Bottom Pattern – A Classic Bullish Reversal
The Double Bottom is one of the most reliable chart patterns, signaling a potential trend reversal from bearish to bullish. Here's how it works:
🔻 First Bottom: Price drops to a support level, finds buyers, and bounces higher.
🔁 Second Bottom: Price retests that same support level again, holds, and starts moving up—forming a "W" shape on the chart.
🚀 Breakout: When price breaks above the neckline (the high between the two bottoms), bullish momentum often follows.
💡 Key Idea:
Support holding twice shows sellers are losing control and buyers are stepping in. The longer the pattern forms, the stronger the potential breakout.
📈 Best Used With:
· Clear support and resistance levels
· Volume confirmation on the breakout
· Additional confluence like trendlines or moving averages
Target Calculation:
Measure the distance from the bottoms to the neckline, then project that same distance upward from the breakout point.
Simple, clean, and effective when spotted early.