📊 Price Action·beginner

Double Bottom

Also called: w bottom, double bottom pattern

A two-trough reversal pattern that looks like the letter W — signals a downtrend has failed at support.

A double bottom is the bullish mirror of a double top. Price falls to a low, rallies, falls again to roughly the same low, and then rallies again. The two troughs form a W. The high between them is the neckline. A break above the neckline confirms the pattern and usually launches a sustained uptrend. Like the double top, this works because the second test of the low fails. Sellers tried to push price below support and couldn't. That trapped late shorts and emboldened buyers. The neckline break is when those shorts start covering, fueling the rally. The measured target is the height of the W projected up from the neckline. A 200-pip pattern implies a 200-pip upside target.

Real trade example

EUR/USD printed a daily double bottom at 1.0445 in October and November 2023. The neckline broke at 1.0760 and price rallied to 1.1140 over the following four months — almost a perfect measured move.

Related terms

Double Top

beginner

A two-peak reversal pattern that looks like the letter M — signals an uptrend has failed at resistance.

Inverse Head and Shoulders

intermediate

A bullish reversal pattern with three troughs — a deeper middle trough flanked by two higher lows — signaling a downtrend is ending.

Support

beginner

A price level where buyers have historically stepped in to stop the decline and turn price back up.

Inside Bar

intermediate

A candle whose entire range (high to low) is contained within the previous candle's range — a sign of consolidation and pending breakout.

Outside Bar

intermediate

A candle whose range fully engulfs the previous candle's range — a strong sign of momentum and potential reversal.

Higher High

beginner

A swing high that's higher than the previous swing high — one of the two confirmations of an uptrend.

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