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

Technical Analysis of Double Bottoms Chart Pattern - Double Bottom Forex Pattern

Double Bottoms Chart Pattern is a Bullish Forex Chart Pattern - Double Bottoms Pattern is a Bullish Forex Signal Pattern

Summary:

• Double bottoms pattern forms after an extended move downward - forex trading downward trend
• This Double bottom pattern formation indicates that there will be a reversal in forex market
• We buy when price breaks-out above neck line: as described on the example below.

What Does a Double Bottom Chart Pattern Mean? - What Happens to Forex Price Action After a Double Bottoms Chart Pattern?

The double bottom pattern look like a W-Shape chart pattern, the best reversal forex trading signal is where second bottom is higher than the first bottom as shown & illustrated below.

This means that the reversal forex trading signal from the double bottom pattern can be confirmed by drawing an upwards forex trend line as shown below. If a trader opens a buy signal the stop loss will be placed just below this upwards trend line.

Analysis of Double Bottoms Chart Pattern - Example of Double Bottoms Chart Pattern