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 a failed double bottom chart pattern?

A failed double bottom chart pattern is when the expected direction doesn’t materialize as expected. In the below chart, we can see that the prices move in the opposite direction of what was first anticipated: Failed double bottom pattern. Source: forextraininggroup.com

What are the 4 rules for a double top/bottom?

In this lesson, I explain the 4 rules that a double top/bottom must abide for it to be legitimate. So for example: For a legitimate double bottom: #1 The 2nd bottom's price must reach the 1st bottom's wick low price level. #2 The 2nd bottom's price cannot... This is our first post in a series of posts about chart patterns.

Is a double bottom pattern a bullish reversal pattern?

Given that it’s almost impossible to get two bottoms at the exact same price, as long as these two lows are at a similar price, it is considered to be enough for the validation of a pattern. Since the pattern is initiated by the downtrend and finalized in an uptrend, the double bottom pattern is considered to be a bullish reversal pattern.