Double Bottom Definition

A double bottom is a chart pattern formed when price reaches a similar low twice before reversing higher, resembling the letter W.

What is a Double Bottom?

It is considered a bullish reversal pattern, suggesting selling pressure has weakened after two failed attempts to break lower.

Confirmation typically comes when price breaks above the resistance level between the two lows.

A stock falling to $30 twice within a few weeks, then rallying above the peak between those lows, forms a double bottom.

Day trading is a strategy where positions are opened and closed within the same trading day.

A dealing desk is a broker execution model where client orders are processed internally rather than sent directly to external liquidity providers.

A debenture is a type of unsecured bond backed only by the general creditworthiness of the issuer rather than specific collateral.