What is the double bottom pattern?
The double bottom is a bullish reversal pattern. Price falls to a level, bounces, and holds that same level on the retest. The neckline is the high between the two lows.
How to spot a double bottom
- 1Find two clear lows at roughly the same price, with a bounce between them.
- 2Draw the neckline across the high of that bounce.
- 3The pattern completes when price closes above the neckline.
How does the double bottom form?
Price falls to a level, bounces, then returns and holds the same level. The high between the two lows is the neckline.
How do you confirm a double bottom?
Two failures to break lower say sellers are spent. Wait for the neckline to give way before treating the shape as finished.
When does the double bottom fail?
In a strong downtrend the second low often undercuts the first slightly and keeps going; the shape looked complete right up to that bar.
No chart pattern works every time. The examples on this page were chosen because they show the pattern clearly, and in real markets patterns fail often.
Practice on real charts
3 real examples of the double bottom, cut off where the pattern completed. Make your call, then see what happened.
The shaded area is a double bottom. Where did price go next?
Double Bottom: common questions
Is the double bottom bullish or bearish?
The double bottom is bullish. Two failures to break lower say sellers are spent; wait for the neckline to give way before believing it.
How do you spot a double bottom?
Find two clear lows at roughly the same price, with a bounce between them. Draw the neckline across the high of that bounce. The pattern completes when price closes above the neckline.
What is the difference between the double bottom and the double top?
The double bottom: Price falls to a level, bounces, and holds that same level on the retest. The neckline is the high between the two lows. The double top: Price rallies to a level, pulls back, and fails at the same level a second time. The neckline is the low between the two peaks.
How reliable is the double bottom?
No chart pattern works every time. In a strong downtrend the second low often undercuts the first slightly and keeps going; the shape looked complete right up to that bar. That is why it helps to wait for confirmation and to practice on many real examples before relying on it.
How can I practice spotting the double bottom?
Use the real charts on this page: each one stops where the double bottom completed, so you can make a call and then see what happened. The free Chartle app mixes the double bottom in with 48 other patterns in short daily sessions.
Keep learning
- Chart pattern gameGuess where price goes next on real charts, all 49 patterns mixed.
- All 49 chart patternsEvery bullish and bearish pattern, with a printable cheat sheet.
- How to read candlestick chartsBodies, wicks and colors explained from the start.
- Cheat sheet PDFAll patterns on two printable pages.
