Double Bottom
BullishReliability: HighAlso called · W pattern, double base
A bullish reversal where price holds twice at a similar level and turns up.
How to spot it
- The two lows are close in price
- The rebound high between them becomes resistance
- Lighter volume on the second low raises reliability
Why this shape forms
The same price was tested twice and held twice. That is a record of real buyers at a real level, which is why it carries more weight than a single touch.
Where it actually means something
It has to come at the end of a downtrend. Two lows inside an advance are just pullbacks and should not be called a double bottom.
What else to check
The high between the two lows has to be taken on a closing basis. Lighter volume on the second low suggests sellers are done.
This means you're wrong
If the second low is clearly lower than the first, treat it as continuation down.
The mistake beginners make
Entering right at the second low. The pattern isn't complete until the middle high is cleared.
Easy to confuse with
If the two lows sit right next to each other it is simply a level holding. If they are far apart they are separate events. Weeks between them is the usual bar.
Real examples from the community
Patterns are probabilistic tendencies, not guarantees. This is not investment advice.