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Double Bottom

References

Overview

  • Double bottom Pattern is developed by William Jiler
  • Looks like lopsided W
  • It represent a fake downtrend signal that becomes corrected very quickly and leads to FOMO buying and stock moving up quickly
  • Mirroring the Market: Double bottoms tend to form while the overall market is volatile, and that's reflected in the shape
  • You have one down leg, then the stock tries to rally but hits resistance and ends up pulling back to form a second down leg
  • The stock rebounds one more time and is finally able to punch through and move higher
  • The breakout typically occurs when the overall market has also bounced back from a correction into a new uptrend

When to Enter

When to Exit

Chart Samples

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