Double Bottom Chart Pattern — How to Spot and Trade It
7/6/2026
Two troughs at a similar level — sellers fail twice at support.
In plain words
Testing the same floor twice and bouncing both times.
What the classic books say
The Double Bottom is a reversal pattern with reference reliability High and illustrative behaviour of ~65-70% after neckline break (the kind of statistics catalogued in Bulkowski's encyclopedic pattern studies and Murphy's technical-analysis classic). Reliable after an extended downtrend.
Level by level
Beginner
Price tried the same low twice and bounced both times. Buyers defend it.
Intermediate
A double rejection at support signals strong demand and a likely bottom.
Advanced
Confirmed only on a break of the intervening peak (the neckline).
Trade plan (educational template)
- Entry: On a close above the peak between the troughs.
- Stop-loss: Below the second trough.
- Target: Trough-to-peak height projected up.
- Check the numbers with the Risk-Reward calculator before any entry.
Common beginner mistakes
- Buying the second bottom before confirmation
Practise it now
_Educational content only — not financial advice. Historical behaviour never guarantees future results._
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