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Double Bottom Reversal Pattern

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Definition:
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.

Background:
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.

Practical Use:
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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Real-Life Double Bottom Examples

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