Double Bottoming

In technical analysis, a "double bottom" is a bullish reversal pattern that indicates a potential change in trend from downward to upward. It occurs after a decline when the price hits a support level twice, with a moderate rise between the two lows, forming a shape similar to the letter "W." Traders often look for confirmation signals such as increased volume or a break above the resistance level formed between the two lows to validate the pattern and anticipate a potential upward move. Recognizing this pattern can help investors identify opportunities to enter long positions before the price begins a sustained rally.