Futures Trading Guide

Double Bottom

A double bottom is a chart pattern where price makes two similar bottoms over a period of time. The prices to not need to be absolutely identical, but very close. A double bottom is often a sign of a trend weakening as it shows currently there are not enough buyers to push through the support area. Sometimes a double bottom can even be a reversal sign. A double bottom will usually be in the shape of a “W”. The chart below illustrates this:

double bottom

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