EUR/JPY CLASSIC DOUBLE BOTTOM
A double bottom is a bullish reversal pattern in technical analysis, often seen in financial markets. It resembles the letter “W” and indicates that the price of an asset has hit a significant support level twice and bounced back each time, suggesting a potential reversal from a downtrend to an uptrend12.
Here’s a quick breakdown:
Formation: The pattern forms after a prolonged downtrend, with two distinct lows at roughly the same price level.
Significance: It signals that the selling pressure is weakening and buyers are stepping in, potentially leading to a price increase.
Confirmation: The pattern is confirmed when the price breaks above the resistance level formed by the peak between the two lows3.
Here’s a quick breakdown:
Formation: The pattern forms after a prolonged downtrend, with two distinct lows at roughly the same price level.
Significance: It signals that the selling pressure is weakening and buyers are stepping in, potentially leading to a price increase.
Confirmation: The pattern is confirmed when the price breaks above the resistance level formed by the peak between the two lows3.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.