Strategies6 min read
Double Bottom Pattern Trading: Catching Reversals
The double bottom is one of the most reliable reversal patterns. Learn how to trade it properly. Neckline entries, measured targets and the failed-pattern tell.
Identifying the Pattern
(1) Price makes a low. (2) Bounces up. (3) Returns to the same low. (4) Two lows at the same level = double bottom.
Entry and Target
Enter when price breaks above the high between the two lows (the neckline). Target: the height of the pattern above the neckline.
Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70-80% of retail investor accounts lose money when trading CFDs. Backtesting does not guarantee future results. Always consider whether you can afford the potential loss of your capital.