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Double Bottom Reversal - ChartSchool - StockCharts

Double Bottom Reversal - ChartSchool - StockCharts - Double...

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18/2/2014 Double Bottom Reversal - ChartSchool - StockCharts.com 1/4 StockCharts.com - ChartSchool Learn more about Technical Analysis and Charting Terminology You are here: StockCharts.com » ChartSchool » Chart Analysis » Chart Patterns » Double Bottom Reversal Advertisement Double Bottom Reversal The Double Bottom Reversal is a bullish reversal pattern typically found on bar charts, line charts and candlestick charts. As its name implies, the pattern is made up of two consecutive troughs that are roughly equal, with a moderate peak in-between. Note that a Double Bottom Reversal on a bar or line chart is completely different from Double Bottom Breakdown on a P&F chart. Namely, Double Bottom Breakdowns on P&F charts are bearish patterns that mark a downside support break. Although there can be variations, the classic Double Bottom Reversal usually marks an intermediate or long- term change in trend. Many potential Double Bottom Reversals can form along the way down, but until key resistance is broken, a reversal cannot be confirmed. To help clarify, we will look at the key points in the formation and then walk through an example.
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18/2/2014 Double Bottom Reversal - ChartSchool - StockCharts.com 2/4 1. Prior Trend : With any reversal pattern, there must be an existing trend to reverse. In the case of the Double Bottom Reversal, a significant downtrend of several months should be in place.
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  • Spring '12
  • RamonBrunoTulibasJr.
  • Double Bottom Reversal, Double Bottom

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