(Double Bottom)
Bullish Pattern
This is the pattern that gives a signal of upward movement and the possibility of a reversal from bearish to bullish or a continuation of the upward movement.
Characteristics of the Bullish Pattern
The price fails to break a certain support.
There is a clear buying signal or inflow of liquidity.
The price moves above resistance or neckline.
It breaks a downtrend or stabilizes above a supply area.
Examples of Classic Bullish Patterns
Double Bottom
Inverse Head & Shoulders
Cup & Handle
Ascending Triangle
Advantages
Provides strong upward opportunities.
Risk management is often clearer (stop below support area).
Usually appears before price breakout.
Disadvantages
Sometimes appears in weak markets causing the movement to fail.
Some patterns require a strong breakout, which may not happen.
Needs confirmations like volume or RSI.
Bearish Pattern
This is the pattern that gives a signal of downward movement — indicating the possibility of a reversal from bullish to bearish or a continuation of the downward movement.
Characteristics of the Bearish Pattern
The price fails to break resistance.
There is a clear selling signal or outflow of liquidity.
Break of support or neckline.
Break of an uptrend.
