What Does a Double Bottoms Chart Pattern Mean?

Double bottom xauusd pattern is a reversal pattern that is formed after an extended downwards gold trend.

Double bottom gold trading chart pattern is made up of 2 consecutive troughs which are roughly equal, with a moderate peak between the two troughs.

The buy signal from this double bottoms chart pattern market bottoming out xauusd signal occurs when the xauusd market breaks-out the neck line to the upside.

In XAUUSD, the double bottoms chart pattern is an early warning xauusd signal that the bearish xauusd trend is about to reverse.

Double Bottom Pattern is only considered complete/confirmed once the neck-line is broken.

In this double bottoms chart patterns formation the neckline is the resistance level for the gold price. Once this resistance is broken the xauusd market will move up.

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 Bottoms 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.

What Does a Double Bottom Chart Pattern Mean? - What Happens to XAUUSD Price Action After a Double Bottoms Chart Pattern in XAUUSD