Comparison
Double Bottom vs Inverse Head and Shoulders
Both are bullish reversals that form after a decline and confirm on a break above resistance. A double bottom has two troughs at roughly the same level. An inverse head and shoulders has three, with the middle trough clearly deepest, showing sellers made one last lower low before failing.
Double Bottom
bullish bias
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.
Inverse Head and Shoulders
bullish bias
An inverse head and shoulders is the bullish mirror of the classic pattern: three troughs after a downtrend, with the middle one (the head) the deepest, capped by a neckline that price needs to break upwards.
Side by side
| Aspect | Double Bottom | Inverse Head and Shoulders |
|---|---|---|
| Troughs | Two, at roughly the same level | Three: left shoulder, a deeper head, right shoulder |
| Confirmation line | The high between the two troughs | The neckline through the two bounce highs |
| Typical invalidation | A close below the troughs | A close below the right shoulder low |
| What it shows | The same low defended twice | A deeper low that could not be repeated, then a higher low |
How to tell them apart on a chart
- Look at the middle low. If it is clearly deeper than the lows either side, it is an inverse head and shoulders.
- A right shoulder that holds above the head is the first sign of a higher low; a double bottom has no equivalent until the neckline breaks.
- Both need a close above their confirmation line before they are complete.
Double Bottom: confirmation and invalidation
Confirms: A close above the swing high between the two lows confirms the reversal.
Invalidated: A sustained close below both lows means support has failed and the pattern is void.
Inverse Head and Shoulders: confirmation and invalidation
Confirms: The pattern completes on a close above the neckline. A retest of the neckline from above that holds as support is a common second confirmation.
Invalidated: A close below the right shoulder low suggests sellers are still in control and the reversal has failed.
Frequently asked questions
Which comes first in a downtrend?
Neither has a fixed order. Many reversals start as one and end as the other, depending on whether the second low undercuts the first.
Do both need volume?
Rising volume on the breakout is often treated as supporting evidence for both. On forex screenshots there is no central volume, so traders lean on the close above resistance and the retest instead.
Full guides
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Educational content only, not financial advice. Chart patterns describe probabilities, not certainties, and every pattern can fail. See our disclaimer.