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Double top patterns are the opposite of double top patterns.
A double top pattern is formed from two consecutive rounding tops.
A profit target should be taken at two times the stop loss amount above the entry price.
Let's look at a historical example of a double bottom from November, 2018.
A spike in volume typically occurs during the two upward price movements in the pattern.
A double bottom pattern is a technical analysis charting pattern that describes a change in trend and a momentum reversal from prior leading price action.
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. The twice-touched low is considered a support level.
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