Back to the encyclopediaSchematic illustration: idealized shape.
Reversal patternsBullishReliability: medium
Double Bottom
Also known as: W pattern, Double Low
Two lows of similar depth at the same support, separated by an intervening high. Shaped like a “W”. A break of the high turns the trend upward.
How it forms
Price bounces twice off the same support zone. The high between the two lows is the trigger line.
How it is typically traded
Entry
On a break of the intervening high (neckline) upward.
Target
The depth of the lows below the high, projected upward.
Stop-loss
Below the second low.
Where & when, plus the limits
Requires a prior downtrend. Until the intervening high breaks, it is just support. Higher timeframes yield more reliable double bottoms.
Related patterns
Education, not investment advice. Chart patterns describe probabilities, not guarantees. They fail regularly. Always manage risk with stop-loss and position size.
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