Pipe Bottom Chart Pattern — How to Spot and Trade It
7/6/2026
Two adjacent deep spikes at a low — a double flush that ends the decline.
In plain words
Two anchors dropped side by side — the boat stops drifting.
What the classic books say
The Pipe Bottom is a reversal pattern with reference reliability Medium and illustrative behaviour of ~70% follow-through on confirmation (the kind of statistics catalogued in Bulkowski's encyclopedic pattern studies and Murphy's technical-analysis classic). One of the better-performing weekly reversals.
Level by level
Beginner
Two sharp flushes to the same depths, then recovery — sellers emptied the tank twice.
Intermediate
Adjacent wide-range down spikes with overlapping lows mark climactic capitulation.
Advanced
Confirm on the close above the higher of the two spike highs.
Trade plan (educational template)
- Entry: On the close above the higher spike high.
- Stop-loss: Below the twin spikes.
- Target: Spike depth projected above the confirmation level.
- Check the numbers with the Risk-Reward calculator before any entry.
Common beginner mistakes
- Confusing a single spike with a pipe
Practise it now
_Educational content only — not financial advice. Historical behaviour never guarantees future results._
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