Is a Double Bottom Chart Pattern Bullish or Bearish?

A double bottoms chart pattern has a W shape and it occurs at a market bottom hence its name double bottom chart pattern and it signals a bullish gold price reversal in the gold trading market.

Once a double bottom chart pattern is confirmed then the xauusd market will be considered to be bullish, therefore a double bottom is bullish.

Double Bottom Chart Pattern

Double bottom xauusd chart pattern is a reversal xauusd pattern which forms after an extended downward gold trend. Double bottom gold trading pattern is made up of two consecutive troughs that are roughly equal, with a moderate peak between.

This double bottom pattern formation is considered complete once gold price makes the second low and then penetrates the highest point between the lows, called the neck line. The buy indication from this bottoming out signal occurs when the xauusd market breaks-out the neck line to the upside.

In XAUUSD, this double bottoms pattern formation is an early warning signal that the bearish xauusd trend is about to reverse. It's only considered complete/confirmed once the neck line is broken. In this double bottom pattern formation the neck-line is the resistance level for gold price. Once this resistance is broken the xauusd market will move up.

Summary:

• Double bottoms xauusd chart pattern forms after an extended move downwards
• This Double bottom xauusd chart pattern formation indicates that there will be a reversal in gold trading market
• We buy when price breaks-out above neckline point: see below for an explanation.

Double Bottom Chart Pattern - Is a Double Bottoms Pattern Bullish or Bearish?