Reversal pattern · bullish bias
Double Bottom pattern
A double bottom is two tests of roughly the same low separated by a bounce. It suggests sellers could not push price lower a second time, and it confirms when price breaks above the high between the two lows.
How to identify a double bottom
- A downtrend into a first low.
- A bounce that creates a clear swing high.
- A second decline that holds near the first low.
- The swing high between the lows is the confirmation level.
What confirms it
A close above the swing high between the two lows confirms the reversal.
What invalidates it
A sustained close below both lows means support has failed and the pattern is void.
How traders project a target
Measure from the lows to the confirmation high and add that distance to the breakout point.
Common mistakes
- Buying the second low as if the reversal were already confirmed.
- Treating two lows inside a strong downtrend as a bottom without any change in structure.
- Placing invalidation so tight that ordinary noise around the lows takes it out.
Where it appears
Most useful after a clear decline. Two lows in the middle of a range usually just describe the range.
Frequently asked questions
Is a double bottom a W pattern?
Yes. Its shape looks like a W, which is why it is often called a W bottom.
Does volume matter for a double bottom?
Many traders like to see lighter selling on the second low and stronger buying on the breakout, but price confirmation through the middle high is the essential part.
Can the second bottom be higher than the first?
Yes. A slightly higher second low is common and can even show buyers stepping in earlier.
Related chart patterns
Educational content only, not financial advice. Chart patterns describe probabilities, not certainties, and every pattern can fail. See our disclaimer.