Chart patterns
Double bottom
A double bottom is a bullish reversal pattern: two troughs at the same level that price holds, followed by an upside break.
A double bottom is a bullish reversal pattern: two troughs at the same level that price holds, followed by an upside break.
Price falls, bounces off a level (first trough), rises, falls to test the same level (second trough) and holds. This double bounce shows sellers losing control.
The pattern confirms when price breaks above the peak between the two troughs. It is a very classic bullish reversal signal.
Price touches $50 twice without breaking, with a peak at $58 in between. A break above $58 confirms the double bottom.
Understanding a term is good. Applying it on a real platform with a clear method is better. That is exactly what we do in 5 days.