Double Bottom
ChartBullishReversalReliability:
Two troughs at roughly the same support level separated by a peak; a break above that peak marks a bullish reversal.
Description
It looks like a W. The second trough holds the support level; the horizontal line through the middle peak is the neckline.
Market psychology
Two successful tests of support show selling pressure is spent; buyers gain confidence to push price through the neckline.
How to trade
The target is often the pattern height projected up from the neckline; wait for a close above the middle peak.
Confirmation
A close above the neckline after the second trough holds; volume often rises on the break.
Also known as: W bottom, Double dip
Educational content only — not financial advice. Cryptorua reads public market data and never places orders.