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Two equal bottom with one month duration to occur with high volume at the second bottom or at the breakout point which indicates the trend is bullish in nature.Its used for holding long position
Its the inverse of the double top. This is formed by 2 bottoms (almost the same level) with a minimum period of 1 month. There should be a high volume in the 2nd bottom. You should go long when the pricing moves above the neckline of the last top.
Double bottom is a bullish trend pattern
Minimum duration 1 month
Long positions can be createdThe double bottom is two equivalent bottoms is created with high volume at the right side.
Bullish trend condition:-
The duration between the bottom points should be 20 days.
Volume traded should be high on the right side.Long positions can be considered above break up point
When a chart is plotted with the data and if we found there are two bottoms formed which are very much similar we can say a double bottom is formed, it will look like a Letter “W”.
The twice touched low is considered as a support level. If the stock moves up again after touching the low which was previously formed then we can considered the trend is bullish.
Double bottom conditions:
Two equalant bottoms
Volume should be higher after the second bottom or at the breakout
Duration is 20 days to 1 month
long positions can be created when it exceeds the previous high.
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