Double Bottom

Business, Legal & Accounting Glossary

Definition: Double Bottom

What is the dictionary definition of Double Bottom?

Dictionary Definition

Double Bottom is a technical analysis term which signals a potential trend reversal from bearish to bullish.  Other bullish patterns include Cup and Handle and Triple Bottom.  The Double Bottom pattern was introduced by William J. O’Neil.

Full Definition of Double Bottom

A double bottom is a chart pattern created when a stock makes a low, rebounds, then retests the same low and rebounds once again. A double bottom chart pattern resembles a “W”. A double bottom chart pattern has great significance for a chartist or technical analyst. To a technical analyst, the double bottom formation implies that a stock has hit an important support level and is having trouble going lower. For a technical analyst, a double bottom chart pattern may indicate that a stock has made a low and is now poised for an upward move. However, a break below the support line created by a double bottom pattern is considered extremely bullish. Double bottom chart patterns can be found on intra-day charts, daily, weekly, monthly, yearly and even longer-term charts. The opposite of a double bottom chart pattern is a double top pattern.

A Double Bottom occurs when the price of a stock unsuccessfully attempts to fall through a support level twice.

The Double Bottom pattern, which looks like the letter ‘W’ on a stock chart, often precedes a breakout through the resistance level (middle of the W) and further advances.

Cite Term

To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
Modern Language Association (MLA):
Double Bottom. Payroll & Accounting Heaven Ltd. September 28, 2021
Chicago Manual of Style (CMS):
Double Bottom. Payroll & Accounting Heaven Ltd. (accessed: September 28, 2021).
American Psychological Association (APA):
Double Bottom. Retrieved September 28, 2021, from website:

Definition Sources

Definitions for Double Bottom are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 22nd March, 2020 | 2 Views.