Double Bottom
A charting pattern used in technical analysis. It describes the drop of a stock (or index), a rebound, another drop to the same (or similar) level as the original drop, and finally another rebound.
Investopedia Says:
The double bottom looks like the letter "W". The twice touched low is considered a support level.
Most technical analysts believe that the advance off of the first bottom should be 10-20%. The second bottom should form within 3-4% of the previous low, and volume on the ensuing advance should increase. Related Terms:
Bottom
Chartist
Double Top
Jennifer Lopez
Rounding Bottom
Support
Technical Analysis
Top
Volume |