UK Accounting Glossary
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.
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.
Definitions for Double Bottom are sourced/syndicated and enhanced from:
This glossary post was last updated: 9th February 2020.