What Does a Double Bottom Chart Pattern Look Like?

Double Bottom Chart Pattern

Double Bottom Chart Pattern is a Bullish Gold Chart Pattern - Double Bottom Pattern is a Bullish XAUUSD Signal Pattern

Summary:

• Double bottoms xauusd chart pattern forms after an extended move downwards - gold trading downwards trend
• This Double bottom xauusd chart pattern formation indicates that there will be a reversal in gold market
• We buy when price breaks-out above neckline: as described on the gold trading example displayed and shown below.

What Does a Double Bottom Chart Pattern Mean?

The double bottoms chart pattern look like a W Shape xauusd chart pattern, the best reversal xauusd signal is where second bottom is higher than the first bottom as illustrated and shown below.

This means that the reversal xauusd trading signal from the double bottoms pattern can be confirmed by drawing an upward xauusd trend line as shown below. If a trader opens a buy signal the stop loss will be placed just below this upward trend line.

Analysis of Double Bottom Chart Pattern - Example of Double Bottom Chart Pattern