double bottoms

A chart pattern of price movements that shows a resistance to falling prices. This pattern reflects a period of falling prices followed by a period of rising prices. That pattern is repeated a second time to create what looks like twin bottoms on a price chart. Despite the decline, prices can’t break lower as there is strong support for prices to remain above a minimum level. Technical analysts say that double bottoms indicate a reversal of pricing trends because they indicate that although prices tried to move lower, they were unable to do so, and the next price move will be upward. A double bottom is the inverse of a double top.