Price tests the same low twice and holds both times, forming a W shape. A break above the reaction high between them confirms the reversal.
How to identify it
- Two lows at about the same price
- Clear bounce between the lows
- Second low often sees less selling pressure
Entry
Buy a break above the middle peak (neckline).
Stop loss
Below the lower of the two lows.
Target
Low-to-neckline height projected above the break.
Invalidation
A clean close below both lows.
Does it work for you?
Textbook reliability means little until you know your own numbers. Tag your double bottom trades in TradeZento and it shows your win rate, average win and loss, and P&L per trade for this pattern, so you know whether to keep it in your playbook.