Reversal pattern

Double Bottom Pattern

A bullish reversal pattern formed by two defended lows separated by a rebound high.

Double Bottom Pattern

Original schematic showing the guide's principal visual relationships.

Double Bottom PatternA bullish reversal pattern formed by two defended lows separated by a 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.

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.