Double Bottom
Definition of 'Double Bottom'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.![]() |
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Investopedia explains 'Double Bottom'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. |
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