📍 What is the Double Bottom Pattern?
The double bottom pattern is a trend reversal pattern observed on charts, such as bar and Japanese candlestick charts. Similar to the double top pattern, it consists of two bottom levels near a support line called the neckline. The pattern indicates the end of a downtrend and is confirmed by two failed attempts to break the...
Hello Traders,
Spotting a reversal is always a daunting task I know. That is I use a 2 Step Down Timeframe Method to spot a reversal in correct way. I have explained step by step so please watch in full to understand it clearly. Also do not forget to like the video and let me know in the comment section if you have nay questions.
No chart pattern is more common in trading than the double bottom or double top. This pattern appears so often that it alone may serve as proof positive that price action is not as wildly random as many Traders claim. Price charts simply express trader sentiments, demand, and supply, so the double tops and double bottoms represent a retesting of temporary...
Double tops/bottoms are relatively frequent and easy formations to identify and use. In this post, we provide a description of each pattern, implications, respective measure rule, as well as the variations described by Bulkowski.
We also review the literature on these patterns in order to find various observations as well as a theoretical explanation of their...
What is Double Bottom Pattern?
The double bottom pattern looks like the letter "W". It indicates an trend and momentum reversal in a particular asset. It is best for analyzing the intermediate to longer-term view of a market. Double Bottom Pattern one of the most reliable reversal pattern after Head and Shoulders Pattern.
How does Double Bottom Pattern Work?...
Hello, dear subscribers!
Today we discuss a very important special case of support line - the Double Bottom chart pattern.
Definition
The double bottom usually occurs when price is in the downtrend and bounced off some level (First bottom). After this bounce it seems that the price is going to fall down, but bounces off this level again (Second bottom). If the...
1 - Find a Modified Double bottom forming W Pattern.
2 - At Neck of W draw resistance line.
3 - Enter the Trade at breakout of the neckline.
4 - Use measurement tool for a 1 to 2 risk reward projection to find SL & TP
Double Bottom Pattern Tutorial -
Double Bottom is a bullish reversal pattern usually found at the end of a downtrend. Double Bottom pattern can be easily identified when price reaches a equal low two consecutive times unable to push price to a new lower low to continue the downtrend then the price bounces sharply from the equal low area and then breaks the...
Double bottom is a bullish reversal pattern which means the long term bearish trend will be switched to bullish/uptrend
Also note ,this pattern it s a long term reversal and will not form in a few days
Even though formation in a few weeks is possible it is preferable to have at least 4 weeks between lows
Bottoms usually take longer then tops to form and patience...
Last week we saw a double bottom created on USDCAD 4 hour, with a decent outcome of the NFP last Friday it sent the Dollar flying against CAD. Clearly showing the double bottom pattern would have been perfect to buy once completed.
