What is a double bottom pattern?
In one line: A double bottom is a chart shape where price falls to about the same low twice, holds both times, then rises above the high point between the two lows.
What it looks like
Picture the letter W.
- Price falls to a low and bounces.
- The bounce tops out. That top is the neckline.
- Price falls back to about the same low and holds again.
- It rises and breaks above the neckline.
Step 4 makes it a double bottom. Before that, it's two touches of Support and nothing more.
A simple example
GBP/USD falls to 1.2600 and bounces to 1.2710. Then it drops back to 1.2605, near the old low, and turns up again. A 4-hour candle body later closes at 1.2722, above the 1.2710 neckline.
Sellers had two chances to push through 1.2600 and failed both times. The close above the neckline is the confirmation.
The second low isn't always neat
Here's the part most explanations skip. The second low often dips just below the first one, then snaps back. In the example it might poke to 1.2592, then close back above 1.2600.
That quick poke can take out stop orders resting under the old low, a Liquidity grab. It doesn't kill the pattern. It's often part of it. The shape that counts is the close, not the wick. Our liquidity sweeps guide explains why price does this.
Where a stop would go
If you buy it, the idea is wrong if price falls back under both lows. A stop just below the lower of the two (1.2592 here) says that. That's about 130 pips from a 1.2722 entry, so size it from the stop with the lot size calculator.
Why it matters
A double bottom shows a downtrend losing its push. It's one of the most common Reversal shapes. It matters more when the bigger chart supports a turn. Our double top and double bottom guide goes deeper.
A common mistake
Buying at the second low "because it held last time." Many second lows break straight through. Without the neckline close, you're guessing. It fails often enough that the stop must come first.
Questions
Is a double bottom bullish?
Yes, it's a sign a downtrend may be ending. It counts once price closes above the high point between the two lows.
How long should a double bottom take to form?
There's no fixed time. It can form over hours on a small chart or months on a weekly chart. Bigger timeframes usually carry more weight.
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