Is a Double Bottom Setup Bullish or Bearish?

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

Once a double bottom chart pattern is confirmed then the market will be regarded to be bullish, henceforth a double bottoms is bullish.

Double Bottom Pattern

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

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

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