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Double Bottom
Technical Analysis
O que significa
A reversal pattern where price hits the same low twice and then rallies. It looks like a "W" and hints that the down trend has run out of sellers.
Exemplo
A stock drops to $50, bounces to $58, falls back to $50, and rallies. Two bounces off $50 form a double bottom, hinting an up move may follow.
Erro comum de iniciantes
Beginners buy the second bottom before confirmation. Wait for price to break above the $58 peak between the bottoms; buying early can mean catching a falling knife if $50 breaks.
Termos relacionados
- Double Top — A reversal pattern where price hits the same high twice and then falls. It looks like an "…
- Chart Pattern — A recognizable shape formed by price over time that, based on history, hints at what price…