Bottoming Price Pattern - Double Bottom
A double bottom is a frequently observed bottoming formation that occurs when
a bottom is followed by a short-term upside and then a short-term downside
that culminates with a second bottom. The second bottom reaches approximately the
same price value as the first bottom and is followed by a significant upside.
Below is a double bottom chart of daily closes from Quandl for Colgate-Palmolive (CL). The red horizontal line is the support level for the two bottoms.
Introduction to Stock Price Patterns
Bottoming Price Pattern - Reverse Head and Shoulders
Topping Price Pattern - Bubble Top
Topping Price Pattern - Double Top
Topping Price Pattern - Head and Shoulders Top
Topping Price Pattern - Triple Top