Double Bottom Reversal Pattern
Double Bottom is when the price action within the context of a downtrend has the most recent swing/pivot low equal or nearly equal to the previous swing/pivot low.
The Double Bottom pattern can be formed when the sentiment that was formerly producing the downtrend is now possibly shifting and selling pressure is not strong enough to produce a lower swing high to keep the downtrend intact.
Double Bottoms can be a stronger upward reversal pattern after further confirmation when the next swing low that is produced is even higher.
Technical analysts will use Double Bottoms to begin trying to find new buying opportunities as well as to avoid selling the asset until a new short setup is formed.
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