The **Double Bottom** is a price action pattern that is indicative of a trend change once activated. Price needs to establish a bearish expansion towards the lows before reversing with an impulse. The impulse then needs to get sold into; this will create a retest of the previous low that must hold. Price action will establish a “W” structure which become a sign of demand that leads to a bullish expansion.
Key Characteristics of the **Double Bottom**
- Price Action must first establish a bearish expansion
- The retest of the previous low most hold
- A ‘W’ like formation will confirm demand at the lows
Key Characteristics of the **Double Bottom**
- Price Action must first establish a bearish expansion
- The retest of the previous low most hold
- A ‘W’ like formation will confirm demand at the lows