The double bottom signals a potential trend reversal after selling pressure fades, helping commodity traders spot possible entry points near support.
In this guide to understanding the Double Bottom charting pattern, we’ll show you what this chart looks like and how to interpret it.
What Is the Double Bottom Pattern?
The Double Bottom technical analysis charting pattern is a common and highly effective price reversal pattern.
Chart 1 below of the Dow-Mini future illustrates the Double Bottom reversal pattern:
To create a double bottom pattern, price begins in a downtrend, stops, and then reverses trend. However, the reversal to the upside is short-term.
The price breaks again to the downside only to stop again and reverse direction upwards. With the second bottom of the double bottom pattern, it is usually more bullish if the second low is higher than the first low.
How to Interpret the Double Bottom Chart
The pattern gives a potential buy signal when price breaks the confirmation line to the upside. The confirmation line is drawn across the top of the double bottom pattern (see Chart 1 above).
Retracement
Often, after price penetrates the confirmation line, price will retrace for a short time, sometimes back to the confirmation line. This retracement offers a second chance to get into the market long.
Volume
Volume also plays an important part of interpreting the Double Bottom pattern; this is illustrated in Chart 2 below of Pfizer (PFE):
Generally, volume should explode when the confirmation line is penetrated as it did in the chart of Pfizer (PFE).
Similar Patterns
- Another similar and popular bottom reversal pattern is the Reverse Head & Shoulders Pattern.
- The opposite of the Double Bottom is the bearish Double Top pattern.
Regulated Brokers: Where Can I Trade Commodities?
Further Reading on Reversal Patterns
These reversal tools complement Double Bottom: Bearish Engulfing Pattern, Evening Star, and Inverted Hammer.
Technical analysis is most widely used in CFD and forex trading. If you’re ready to apply these techniques, browse our vetted CFD brokers or forex brokers.
Update history
This page was revised 6 times between May 2020 and April 2026.
Added broker recommendation links and CFD trading context to Further Reading section.
Removed outdated broker table and links from Regulated Brokers section, streamlined Further Reading content, rewrote buy signal explanation for clarity, and updated section heading.
Reorganized content with new table of contents structure, added introductory overview, consolidated broker and further reading sections, and improved chart references with numbered labels.
Added content alert call-to-action element to Further Reading section.
Reorganized content by creating a new "Double Bottom Potential Buy Signal" heading to better structure the pattern explanation, and removed the full disclaimer text from the page footer.
Reorganized content flow by moving introductory explanation earlier, repositioning volume discussion, and consolidating related pattern information.
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