Double Bottom

What does it Mean? A charting pattern used in technical analysis. It describes the drop of a stock (or index), a rebound, another drop to the same (or similar) level as the original drop, and finally another rebound.

Investopedia Says... The double bottom looks like the letter "W". The twice touched low is considered a support level.

Most technical analysts believe that the advance off of the first bottom should be 10-20%. The second bottom should form within 3-4% of the previous low, and volume on the ensuing advance should increase.

Terms Related Links

Bottom
Chartist
Double Top
Jennifer Lopez
Rounding Bottom
Support
Technical Analysis
Top
Volume

Terms Related Links
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