What is a double bottom breakout?

The double bottom breakout is a bullish reversal trading pattern that emerges at the end of a bearish trend. The reversal is composed of two consecutive bottoms with approximately the same equal lows. This is different from the double top breakout because the setups we’re looking for will be long trades, instead of short trades.

What is a double bottom pattern?

More aggressive targets are double the distance between the two lows and the intermediate high. A double bottom pattern is a classic technical analysis charting formation showing a major change in trend from a prior down move. The double bottom pattern looks like the letter "W." The twice-touched low is considered a support level.

What is the difference between a double bottom and a bar chart?

In the P&F world, Double Bottom Breakdowns are bearish patterns that are confirmed with a support break. With bar charts, on the other hand, Double Bottoms are bullish patterns that are confirmed with a resistance break. These patterns are not contradictory. They are simply different patterns with similar names.

What is double top & bottom analysis?

Double top and bottom analysis is used in technical analysis to explain movements in a security or other investment, and can be used as part of a trading strategy to exploit recurring patterns. Double tops and bottoms are important technical analysis patterns used by traders. A double top has an 'M' shape and indicates a bearish reversal in trend.