How to Trade the Double Bottom Chart Pattern. A double bottom chart pattern is a strong bullish price action signal that occurs at the end of a downtrend. It happens when an equal, or almost equal, low forms during a downtrend, instead of another lower low.
The idea behind the pattern is that failure to make another lower low could be a signal of momentum leaving the trend. The first low in the pattern becomes support that provides a strong bounce for the second, equal low.
- Book Name: How to Trade the Double Bottom Chart Pattern
- Book Type: eBook
- Book Category: The Stock Market Books