Double Bottom
Two consecutive troughs at approximately the same price level, forming a "W" shape, signalling support and potential upside reversal.
A Double Bottom is the bullish counterpart of the Double Top. Price finds support, bounces, retests the same low, holds, and then breaks above the intervening peak — the "confirmation high."
Confirmation requires a close above the peak between the two lows. The measured target equals the distance from the bottoms to the peak, projected upward.
- Second bottom often has lighter volume, indicating selling pressure is drying up.
- A breakout-retest of the confirmation high is a cleaner entry than chasing the initial move.
Related Terms
Cup and Handle
A rounded bowl-shaped base followed by a small downward drift (the handle) — a bullish continuation pattern preceding a breakout to new highs.
IntermediateDouble Top
Two consecutive peaks at roughly the same price level, separated by a pullback, signalling exhaustion and potential trend reversal downward.
BeginnerInverse Head and Shoulders
A three-trough reversal pattern at a downtrend bottom: the middle trough is deepest, flanked by two shallower troughs, signalling a trend floor.
BeginnerNeckline
The support or resistance level connecting the lows (or highs) of a reversal pattern — the line whose break confirms the pattern.
BeginnerReversal Pattern
Any pattern that signals a change in the prevailing trend direction — Head and Shoulders, Double Tops/Bottoms, and wedges at extremes are classic examples.
BeginnerRounding Bottom
A gradual, semicircular base where selling pressure slowly transitions to buying — a long-term bullish reversal pattern.
IntermediateTriple Bottom
Three tests of the same support level that all hold, signalling firm demand and a likely bullish breakout above the intervening peaks.
Beginner