What Is Double Bottom?
A double bottom forms when price drops to a support level, bounces, drops back to roughly the same level — and holds. The pattern resembles the letter W.
Confirmation comes when price breaks above the peak between the two lows. The measured-move target is the height of the W projected up from the breakout.
Double bottoms signal that sellers have failed twice to push price lower. Buyers step in aggressively at the second test, often driven by traders who missed the first bounce.
Reality check: Strong double bottoms typically have higher volume on the second bounce than on the first decline — buyers committing capital. Without volume confirmation, treat with skepticism.
Related terms
- Double Top — A bearish reversal pattern where price tests a resistance level twice and fails.
- Support and Resistance — Price levels where buying or selling pressure historically halts price movement.
- Breakout — A price move beyond an established support, resistance, or chart pattern boundary.