Double Bottom

A double bottom is a chart pattern in technical analysis that signals the end of a downtrend and the beginning of a new uptrend.

Essentially are areas of support, they form when the price drops, rebounds from the given price point, then drops again to re-test that level and finally continues to rise.

For a double bottom to be confirmed the price must continue rising without returning to re-test that level a third time.

Also, another thing to look out for is that volume should be increasing as the asset rises the second time, this signals that other market participants have also identified the same pattern and are attempting to trade it.

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