Double Bottom

A double bottom is a bullish technical chart pattern that indicates a potential reversal in a downtrend. It resembles the letter "W" and indicates that after two lows, there will be a significant increase in price. A double top is an opposite movement in price compared to a double bottom.

Here's how the pattern typically develops:

1. First bottom: the price falls to a new low, followed by a slight reversal. This creates the first bottom of the "W" shape.
2. Peak: after the first bottom, the price rises and forms a peak;
3. Second bottom: the price falls again to either the same or similar level as the first;
4. Breakout: the price then rises above the peak formed between the two bottoms, confirming the pattern.

Given that the price holds a low twice before eventually rising to a higher high, the chart pattern is considered a bullish reversal.

A double top is an opposite movement in price compared to a double bottom.