Is Double Bottoms Pattern Bullish or Bearish?

Example of Double Bottoms Chart Setup

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

Summary:

• Double bottom stock indices chart setup forms after an extended move downwards - indices downwards trend
• This Double bottom stock indices chart setup formation indicates that there will be a reversal in stock indices trading market
• We buy when stock indices price breaks-out above neck line: as described on the stock indices trading examples explained below.

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

The double bottom stock indices pattern look like a W-Shape stock indices chart pattern, the best reversal stock index signal is where the second bottom is higher than the first bottom as displayed and 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 trendline as shown below. If a trader opens a buy stock indices signal the stop loss will be placed just below this up-wards trendline.

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