Double Bottom Pattern

What is Double Bottom pattern and how to do intraday with it?

A Double Bottom pattern is an extremely bullish reversal pattern that forms after the price reaches the lowest point in the downtrend and gets bounced back from the support level two consecutive times with a moderate lift between the two Lows. You get the confirmation once the price breaks the Neckline level. The double bottom looks like the letter “W”.

How to Identify the pattern?

to identify the pattern, you should look for these points:
1. Look for the two low points with similar width and height
2. The distance between these the first Low and the neckline should be minimum of 7 candles and same for the distance between neckline and the second Low.
3. There should be a breakout at the neckline

Double bottom pattern Entry zone/Target/Stoploss?

Breakout: once the price hit support level two consecutive times, look for the breakout at the Neckline level, the opening of the second candle after the breakout will be your first entry.

a) Where to add stoploss?
you can add the stoploss between the second Low and the neckline Level.

b) What will be the target?
The gap between the support level and the first resistance level will be the same price point for your target after the breakout

When Resistance becomes the Support
After the breakout when the price drops again for re-testing and hit the support level (Previous resistance level) and bounce back the candle which forms after that will be your entry point.

a) Where to add the stoploss?
Add the stoploss at the high of the candle which retested.

b) What will be the target?
The gap between the support level and the first resistance level will be the same price point for your target after the breakout

Key Takeaways
It is a Bullish reversal pattern
The double bottom looks like the letter “W”.
It can occur in shorter and longer time frames
do not enter before the breakout, it will be a false double bottom pattern

Some examples of the Double Bottom pattern in real life chart

The chart patterns showed on the internet are not always realistic, you have to study thoroughly to see the double bottom forming. In few cases, you might have missed the opportunity of a great trade because you are sticking to the unrealistic patterns shown. Here are few double bottom patterns from Live trading.