Pattern "Double Bottom" (W): how to use in trading 🔥

The "Double Bottom" pattern is a powerful trend reversal signal. It forms during times of low prices. It indicates a transition from a bear market to a bull market. By the fall of 2025, this pattern has performed quite well. Effectiveness is about 88% in bull markets. Impressive, isn't it? 🚀

What is "Double Bottom"? 📊

Essentially, these are two minima almost at the same level. They appear after a long downward trend. Between the minima, there is a small peak. On the chart, it looks like the letter "W". Here, the price seems to hit an invisible barrier. It tries to break downwards. It cannot.

The distance between the minima is important. The greater it is, the better for a reversal. When buyers take over, not allowing the price to fall below the support level... It's a sign. It seems that a rise is coming soon 📈

How to see "W" on the chart? 🔍

1. First the descending trend — without it, the pattern will not form.
2. Two minimums — the price falls, bounces back, and falls again to approximately the same level.
3. Neckline — this is the peak between the minimums
4. Breakout — when the price rises above the neckline after the second drop
5. Pattern Check — often the price returns to the neck line and rebounds.

It seems that trading volume also matters. If at the second minimum it is higher than the first... A good sign. And if it increases upon a breakout — even better 💪

Trading on the "Double Bottom" 💰

Analysis from 2010 to 2025 showed an average return of about 50%. Not bad. In April 2025, there was a striking case during high volatility 🌕.

When to enter:

• After breaking the neckline, open a long position.
• You can add RSI and MACD for reliability

Risks:

• Set the stop-loss slightly below the second minimum
• The goal is approximately the height of the pattern from the breakout point.

The risk to reward ratio can be 1:2. Sounds tempting 📱

Pros and cons 🤔

Good:

• It is clear where to enter and exit
• Works on different timeframes
• Combines with indicators
• Good risk/reward ratio

Not very:

• Sometimes the breaks deceive
• A long formation is taking place on larger timeframes.

Testing showed: "Double Bottom" remains one of the most reliable analysis tools in the cryptocurrency market of 2025 🔥 Adding RSI and MACD seems to increase accuracy. It helps catch trend reversals.