Is Double Bottoms Pattern Bullish or Bearish?
Example of Double Bottoms Chart Pattern
Double Bottoms Chart Pattern is a Bullish Stock Indices Chart Pattern - Double Bottoms Pattern is a Bullish Indices Trading Signal Pattern
Summary:
- Double bottom stock indices chart pattern forms after an extended move downward - indices downwards trend
- This Double bottom stock indices chart pattern 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 Pattern?
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 upwards indices trend line as shown below. If a trader opens a buy stock indices signal the stop loss will be placed just below this upwards trend line.
Analysis of Double Bottoms Stock Indices Chart Pattern - Example of Double Bottoms Chart Pattern
