Chart patterns
Double bottom
Definition
Two lows at about the same price after a downtrend, with a bounce high between them. Bullish only after a close above that high.
Example
Say a stock in a downtrend bottoms at $18.40, bounces to $21.00, then drops to $18.25 before turning up. The two lows are only $0.15 apart, close enough to count, but the pattern turns bullish only when a candle closes above the $21.00 bounce high. If price instead stalls at $20.60 and rolls over, there is no double bottom, just a downtrend taking a pause.
Hypothetical numbers, for illustration only.
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