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 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?
