—…• —%—…• —%—…• —%—…• —%—…• —%—…• —%—…• —%—…• —%—…• —%—…• —%
BitBlog Logo

Double Bottom

Two swing lows at similar price levels with a neckline breakout.

ReversalBullishMedium reliability1h4h1D
Double Bottom

Concept

The Double Bottom forms after a downtrend. Price tests a support zone twice, failing to break lower. A break and close above the neckline typically confirms a trend reversal.

Trading Plan

  • Prior downtrend leading into the pattern.
  • Two distinct swing lows near the same level (±1–3%).
  • Neckline drawn across the interim swing high.

Confirmation

  • Break and close above neckline.
  • Rising volume on the breakout.
  • Retest of neckline holding as support (optional but strong).

Invalidation

  • Clean close back below neckline after breakout.
  • Lower low under the second trough.

Targets

  • Target = Neckline – Trough height projected above neckline.
  • Trail stops once price reaches 0.618–1.0 of measured move.

Measured move: Height = Neckline - Trough low; Target = Neckline + Height

Risk

Below the second trough or below the neckline retest low.