Double Bottom
Two roughly equal lows with a bounce between them — sellers tried to push through the same floor twice and couldn't.
The mirror of a Double Top: price falls to a low, bounces, falls again to almost the same level — and holds, rather than breaking through to a new low. Two failed attempts at the same floor is read as that floor being genuinely strong.
Confirmation is a break above the high of the bounce between the two lows — a real, if imprecise, sign that buyers have finally taken over from sellers who've now twice failed to push lower.
Confirmation is the break above the bounce high between the two lows. A stop below the second low is the common way to define invalidation. The pattern's height, projected upward from the breakout, is a commonly-used rough target.
The same false-signal risk applies in reverse — acting on the second low alone, before the bounce high actually breaks, risks getting caught in a downtrend that simply carves out a third, lower low instead of reversing.
- Same logic as Double Top, inverted — the second low failing to break the first is the signal, not the low itself.
- Confirmation is the break above the middle bounce high.
- Often shows up at the end of extended downtrends, where selling pressure has had time to genuinely exhaust itself.