Price action and chart patterns
Double bottom pattern
Price makes two lows at roughly the same level and then breaks above the high between them.
Why it works
Sellers failed twice at the same price. The break of the middle high confirms buyers have taken control.
How to use it
Buy the close above the middle high (or its retest), stop below the second bottom, target at least the height of the pattern.
The typical mistake
Buying the second bottom too early: two equal lows are also a liquidity pool that may get swept.
FAQ
What is Double bottom in trading?
Price makes two lows at roughly the same level and then breaks above the high between them.
How do you trade Double bottom?
Buy the close above the middle high (or its retest), stop below the second bottom, target at least the height of the pattern.