Double Bottom Practice
A double bottom is the mirror of the double top — two failed attempts to push lower, forming a "W". It hints sellers are exhausted. Train to confirm it with the breakout, not hope.
A double bottom forms when price falls to a low, bounces, then falls again to roughly the same level and holds. The high between the troughs is the neckline; a close above it confirms the reversal and projects an upside target equal to the pattern height.
How to spot it
- ✓ A downtrend leads into the first trough.
- ✓ Two troughs form at a similar level.
- ✓ The bounce between them sets the neckline (resistance).
- ✓ Confirmation is a close above the neckline.
- ✓ A higher low on the second dip is an extra positive.
⚠️ Common mistake
Buying the second low before the neckline breaks. Price can keep falling after a second touch; the breakout is what turns the pattern from hope into a signal.
FAQ
Is a double bottom reliable?
It is one of the more dependable reversal shapes once the neckline breaks on volume — but nothing is guaranteed. Always use a stop. This page is practice, not advice.
Where do traders place the stop?
Commonly just below the second trough, so a failed breakout exits quickly. Sizing and stops are personal risk decisions, not advice.