Double Bottom Chart Pattern
The double bottom chart pattern is an easy chart pattern to spot. It looks like the letter W. The pattern can develop over a period weeks, months, or years.
The left side of the pattern shows that the share price has dropped over a period of time, from the high point on the left side of the chart, to the bottom of the chart, where the share price has finally found support. The share price rebounds, just a little, but can’t sustain an upward trajectory, and drops back down to test the support on the bottom of the pattern one more time. This time, when the share price bounces off the bottom of the pattern, the share price continues to rice, over time, in a steady manner, as seen on the right side of the pattern. Over time, all of these moves taken together, create the double bottom pattern, or the letter W, if that helps you see the pattern better. Continue reading