A Double Bottom is considered a bullish signal, indicating a possible reversal of the current downtrend to a new uptrend. Sometimes called an "W" formation because of the pattern it creates on the chart, the Double Bottom is one of the most frequently seen and common of the patterns.
The Double Bottom is a reversal pattern of an downtrend trend in a financial...
What is Double Bottom Pattern?
The double bottom pattern looks like the letter "W". It indicates an trend and momentum reversal in a particular asset. It is best for analyzing the intermediate to longer-term view of a market. Double Bottom Pattern one of the most reliable reversal pattern after Head and Shoulders Pattern.
How does Double Bottom Pattern...
1) Prior Trend:
For the double top pattern, the prior trend must be up- trend for several months.
2) First Peak:
Normally, this peak will be higher peak of current trend.
3) Neck Line:
From the prior trend, neck-line should be 10% to 30% normal case. The lows are sometime Rounded or drawn out a bit which can be sign of low volume and low demand...
