Is a Double Bottom Chart Pattern Bullish or Bearish?

A double bottom stock indices chart pattern has a W shape and it occurs at a market bottom hence its name double bottom stock indices chart pattern and it signals a bullish stock indices trading price reversal in the stock indices trading market.

Once a double bottom stock indices chart pattern is confirmed then the stock indices trading market will be considered to be bullish, therefore a double bottoms is bullish.

Double Bottoms Pattern

Double bottoms stock indices pattern is a reversal indices pattern which forms after an extended downward indices trend. Double bottoms stock indices trading chart pattern is made up of two consecutive troughs that are roughly equal, with a moderate peak between.

This double bottom stock indices chart pattern formation is considered complete once stock indices trading price makes second low and then penetrates highest point between lows, called the neckline. The buy indication from this bottoming out signal occurs when stock indices market breaks-out the neck line to the upside.

In Indices, this double bottom stock indices chart pattern formation is an early warning signal that the bearish Indices trend is about to reverse. It's only considered complete/confirmed once the neckline is broken. In this double bottoms stock indices chart pattern formation the neck line is the resistance level for the indices trading price. Once this resistance is broken the stock indices trading market will move up.

Summary:

• Double bottom stock indices pattern forms after an extended move downward
• This Double bottoms stock indices chart pattern formation indicates that there will be a reversal in stock indices trading market
• We buy when stock indices price breaks above the neck line point: see below for explanation.

Is a Double Bottom Chart Pattern Bullish or Bearish?