What is a double bottom?

A double bottom is a bullish reversal pattern that occurs after a downtrend, characterized by two equal lows followed by a breakout above the resistance level, signaling the start of an upward trend.

How do I know if a double bottom pattern is valid?

The pattern is valid if the two lows are roughly equal and separated by a significant peak. Confirmation comes when the price breaks above the resistance level between the two bottoms, ideally with increased volume.

How can I use the double bottom pattern in trading?

Traders typically enter long positions when the price breaks above the resistance level formed by the peak between the two bottoms. It’s important to confirm the pattern with volume and other technical indicators to increase the likelihood of success.

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What is DOUBLE BOTTOM?

DOUBLE TOP

Double top is a bearish reversal pattern that occurs after two equal highs in price.

TradeReply is an advanced analytics suite designed for crypto and stock traders to input historical trading data and leverage powerful visuals, graphs, and metrics to optimize and develop effective trade strategies with real-time insights.

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What is DOUBLE BOTTOM?

DOUBLE TOP

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