Is Double Bottoms Pattern Bullish or Bearish?

Example of Double Bottoms Indices Chart Pattern

Double Bottoms Indices Chart Pattern is a Bullish Stock Indices Chart Pattern - Double Bottoms Pattern is a Bullish Indices Trading Signal Pattern

Summary:

• Double bottoms stock indices chart pattern forms after an extended move downwards -indices downwards trend
• This Double bottoms stock indices chart pattern formation indicates that there will be a reversal in the stock indices trading market
• We buy when stock indices price breaks above the neckline; as explained on the stock indices trading example explained and illustrated below.

What Happens to Indices Price Action After a Double Bottoms Indices Chart Pattern?

The double bottoms stock indices chart pattern look like a W-Shape stock indices chart pattern, the best reversal stock indices signal is where the second bottom is higher than the first bottom as shown below.

This means that the reversal stock indices signal from the double bottoms stock indices chart pattern can be confirmed by drawing an upward indices trend line as shown below. If a indices trader opens a buy stock indices signal the stop loss will be placed just below this upward indices trend line.

Technical Analysis of Double Bottoms Stock Indices Chart Pattern - Example of Double Bottoms Indices Chart Pattern