What is Double Bottom in Forex Trading?

A Double Bottom is an exceptional kind of chart pattern used in the technical analysis. This chart is identified by a different drop in price, followed by a slight reversal in the downward movement. Then it is again followed by a decline in the price and also is followed by a deterioration in the downward direction. This chart makes a shape of ‘W ‘, and it is known as a double bottom. The double bottom and double bottom are the two most recognizable patterns used in the technical analysis. Form of chart pattern used in technical analysis.  Double Bottom reflects extreme levels of support and often indicates a significant change of trend. The double low points are considered to be support levels, with the resistance level measured at the widest point of the ‘W’ formation. When the rise following the second low breaks, the resistance point generally the surge will continue sharply, with these reversal trends garnering more reward following extended downtrends. It is usually considered that the best entry point on a double bottom formation is around the second resistance level, which, when broken, tends to indicate a confirmation of the price reversal.