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ُThe Double Bottom Pattern


The double bottom pattern :is a reversal pattern that comes at the end of the bottom trend. It is two bottoms in one level.

Forming the pattern: before the end of the bottom trend, the buyer enters forcefully to increase the price, forming the first bottom, and the seller returns in an attempt to regain control of the market and return the bottom trend.

The seller fails to break the last bottom, which was formed by the buyer, who in turn re-entered again to increase the price and succeeded in penetrating the last top (the neckline) and the safety rope of the seller to raise the surrender flag and leave the scene for the buyer to change the direction from bottom trend to uptrend.




How to trade on it: The entry is made ( buy), after the neckline is penetrated and closing above the neck line, the distance between the neck line and the last bottom is measured, and then it's dropped above the neck line and it would be the target of the pattern, and half of it would be the (stop loss).



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