Double bottom

A double bottom chart pattern indicates a period of selling, causing an asset’s price to drop below a level of support. It will then rise to a level of resistance, before dropping again. Finally, the trend will reverse and begin an upward motion as the market becomes more bullish.

A double bottom is a bullish reversal pattern because it signifies the end of a downtrend and a shift towards an uptrend

Traders will seek to capitalize on this pattern by buying halfway around the bottom, at the low point, and capitalizing on the continuation once it breaks above a level of resistance.

Author: shaktilogin