7.26What is a double bottom?
1What is it?
A double bottom is a "W" shape: price hits the same low twice and holds, then breaks above the neckline.
2Why does it exist?
Sellers failed twice at the same level; the downtrend may be ending.
3Diagram
4Quick revision
- "W" shape.
- Confirmed above neckline.
- Bullish reversal.
5Knowledge check
Q1. Shape of a double bottom?Show answer
W.
Q2. What confirms it?Show answer
A close above the neckline.
Q3. Bullish or bearish?Show answer
Bullish.