Double Bottom

What it is

A double bottom is the mirror image of a double top: two lows at roughly the same price with a swing high (the neckline) between them.

It is read as bullish only after a candle closes above the neckline. Many double bottoms never break out and resolve lower instead; the statistics below include those.

How ClosedCandle detects it

• Two swing pivots (from the 1.5× ATR zigzag) at nearly the same price: the second may differ from the first by at most 0.5× ATR.
• The two pivots are 8–120 candles apart, the swing between them is at least 1× ATR deep, and price must have entered the pattern from the far side of that swing.
• The neckline is the horizontal level of that middle swing. The pattern is recorded as soon as the second pivot is confirmed by a closed candle.
• Confirmed when a candle closes beyond the neckline; invalidated when a candle closes beyond the more extreme of the two pivots (also the measured stop), or after 30 candles without a breakout.
• Only closed candles are used; a wick through a line never counts. Once recorded, the detection is never changed.

Full methodology · how setups are measured.