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Chart PatternsD
Double Bottom
A double bottom is a bullish reversal chart pattern that forms when an asset's price declines to a support level twice, creating two distinct troughs at roughly the same price with a moderate rise between them. The pattern is confirmed when price breaks above the resistance level formed by the peak between the two lows, known as the neckline. It signals that selling pressure is exhausting and buyers are stepping in, often marking the beginning of a new uptrend.
Example
“The stock tested the $45 support level twice over six weeks, forming a double bottom, and when it broke above the $50 neckline, traders entered long positions.”