Investing Dictionary
Charts

What is Double Bottom?

A "W" shaped pattern that signals a potential reversal upward

Full Explanation

A double bottom forms when a stock hits a low, bounces, drops to the same low again, then bounces again. It forms a "W" shape. Breaking above the middle of the W is the bullish signal.

Pro Tip

The double top is the opposite — an "M" shape that signals a potential drop.

Related Charts Terms

Candlestick

A chart shape that shows a stock's price movement in a time period

Support Level

A price where a stock tends to stop falling

Bollinger Bands

Lines around a stock's price showing its normal range

Fibonacci Retracement

Key price levels where a stock might pause or reverse

View all Charts terms →

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