DEFINITION of 'Rising Bottom'

A pattern on a security's chart that results from the daily low price rising over time, creating a series of ascending troughs. Technical traders use this pattern to confirm that the trend of the underlying security is heading upward. The chart below illustrates a security that has three rising bottoms, indicating progressively higher lows over time.

Also known as "ascending bottom".

Rising Bottom

BREAKING DOWN 'Rising Bottom'

This pattern is considered to be bullish. Rising bottoms signify increasing basic support levels and ascending tops.

RELATED TERMS
  1. Ascending Tops

    This refers to a series of peaks, each peak higher than the previous ...
  2. Ascending Triangle

    An ascending triangle is a bullish chart pattern used in technical ...
  3. Inside Day

    A candlestick formation that occurs when the entire daily price ...
  4. Continuation Pattern

    A continuation pattern suggests that a trend in a security price ...
  5. Rising Three Methods

    The Rising Three Methods is a bullish candlestick pattern that ...
  6. Bottom

    The lowest point or price reached by a financial security, commodity, ...
Related Articles
  1. Trading

    Carnival Stock in Ascending Triangle Pattern

    This bullish chart pattern suggests that Carnival shares could be set to move 15% higher.
  2. Trading

    Alphabet Stock Set to Rally 20%

    An ascending triangle chart formation suggests potential upside for shares of the tech giant.
  3. Trading

    Aflac Stock Is Set to Pop 10%

    An ascending triangle formation on the insurance provider's stock chart implies significant upside potential.
  4. Trading

    Watch For These Chart Pattern Breakouts Right Now

    These stocks are near chart pattern breakout points, indicating potential trend reversals ahead.
RELATED FAQS
  1. What are the differences between patterns and trends?

    Learn the difference between a pattern and a trend. Explore how technical analysts use patterns and trends to identify trading ... Read Answer >>
  2. What are the differences between a bar chart and candle sticks?

    Explore the difference between bar and candlestick charts. Learn how technical analysts use charts in the analysis of supply ... Read Answer >>
  3. How do I identify a stock that is under consolidation?

    Discover the three major characteristics stocks or securities exhibit when they are trading under a period of price consolidation. Read Answer >>
Hot Definitions
  1. Intrinsic Value

    Intrinsic value is the perceived or calculated value of a company, including tangible and intangible factors, and may differ ...
  2. Current Assets

    Current assets is a balance sheet account that represents the value of all assets that can reasonably expected to be converted ...
  3. Volatility

    Volatility measures how much the price of a security, derivative, or index fluctuates.
  4. Money Market

    The money market is a segment of the financial market in which financial instruments with high liquidity and very short maturities ...
  5. Cost of Debt

    Cost of debt is the effective rate that a company pays on its current debt as part of its capital structure.
  6. Depreciation

    Depreciation is an accounting method of allocating the cost of a tangible asset over its useful life and is used to account ...
Trading Center