Double Bottom Pattern
Original schematic showing the guide's principal visual relationships.
First trough → rebound high → second trough; confirmation is a close above the rebound high.
Pattern anatomy
A bullish reversal pattern formed by two defended lows separated by a rebound high.
First trough → rebound high → second trough; confirmation is a close above the rebound high.
How it works
Identify the prior trend first, mark repeated swing highs and lows, then draw only the support, resistance, or neckline justified by those pivots. A pattern remains provisional until price closes beyond its confirmation boundary; visual resemblance alone is not enough.
How to read it
The second defense suggests selling pressure could not establish a lower low. The trough-to-rebound height is commonly projected above the breakout.
Practical example
Price defends the same support area twice and rebounds to a visible resistance level between the lows. A close above that resistance completes the pattern, while a decisive break below the second low invalidates the bullish interpretation.
Confirmation checklist
Look for an established prior trend, a completed boundary break, and preferably expanding volume or momentum confirmation. A reversal pattern formed without a trend to reverse is weaker evidence.
Limitations and false signals
A second low can fail during persistent downtrends. Treat the pattern as incomplete until resistance is broken on a closing basis.
Limitations and false signals
Frequently asked questions
What does this pattern or indicator describe?
A bullish reversal pattern formed by two defended lows separated by a rebound high.
How should the signal be confirmed?
The second defense suggests selling pressure could not establish a lower low. The trough-to-rebound height is commonly projected above the breakout. Look for an established prior trend, a completed boundary break, and preferably expanding volume or momentum confirmation. A reversal pattern formed without a trend to reverse is weaker evidence.
What can cause a false signal?
A second low can fail during persistent downtrends. Treat the pattern as incomplete until resistance is broken on a closing basis.