Double Bottoms Chart

Examples of Double Bottoms

Note: Dramatic rise in volumes on second bottom







Double bottoms are identical to double tops except they work in the opposite way and thus create a Buy signal.

Double bottoms basically tell us that the market has tested a price level on two occasions and on both times refused to go Lower.

They can also come in the form of triple and quadruple bottoms.

Volumes on the second bottom should be Greater than the first bottom.
Double bottoms can give an excellent Buy signal and most Technical Traders would act on such a sign.