Glossary › double bottom

Trading glossary · patterns

double bottom

A W-shaped chart pattern: price falls to about the same low twice, then climbs past the high between them.

The fuller meaning

A bullish reversal pattern: two lows at roughly the same level with a peak between, confirmed only by a close above that middle high, the neckline. Traders often estimate a target by adding the pattern's height to the neckline; the idea is wrong if price breaks below the lows.

double bottom, also called W pattern.

Related words

apex · ascending triangle · bear flag · bull flag · busted pattern · chart pattern · continuation · continuation pattern · converging lines · cup and handle