Double Bottom
A double bottom is a reversal base shaped like a W: price makes a low, rallies to an interim peak, sells off to a second low near the first, then turns back up. The second low tests whether sellers still have control at that level; when it holds, the pattern completes.
- Bias
- Bullish
- Category
- Chart Patterns
- Scan cadence
- Every close
What has to be true for a Double Bottom to trigger
- Two distinct lows at broadly similar levels
- A clear interim peak separating them
- Enough separation in time that the two lows are distinct events, not one messy base
- The second low holding rather than breaking decisively below the first
- Volume typically lighter on the second low than the first
How PatternGrade grades it
Lows that align closely, a well-formed middle peak, and a second low that undercuts only slightly before recovering all raise the grade. Widely mismatched lows or a shallow, indistinct middle grade lower.
Every scanner grades its hits A+, A or B from the pattern's own measurable structure. The grading is deterministic — the same chart always produces the same grade. It describes how closely the chart matches the pattern, not how likely anything is to happen; no hit rate or probability is attached to a grade. The reasoning is set out in the methodology.
What a Double Bottom looks like in practice
A stock falls from $80 to $52 over three months, rallies to $63 over three weeks, then rolls over and drops to $50, slightly undercutting the first low, before turning back up. The two lows are about eight weeks apart, the interim peak at $63 is the neckline, and the second decline happens on visibly lighter volume than the first. Price then reclaims $63.
How a Double Bottom fails
The second low keeps going. A double bottom is only a double bottom while the second low holds near the first; break well below it and the stock is simply still in a downtrend, and the pattern is retroactively meaningless. The other failure is at the neckline: price rallies from the second low, reaches the interim peak, and stalls there on light volume. A W that cannot clear its own middle has not reversed anything.
What this pattern is telling you
A double bottom is only a reversal once the interim peak is cleared. Until then, it is two lows and a rally, a shape that also appears mid-downtrend.
PatternGrade is not a financial advisor and does not give buy or sell recommendations. Targets and stops shown on a pattern are reference levels derived from its geometry, not advice.
How to scan for Double Bottom setups
PatternGrade rescans every liquid US stock (~4,500 names) for this pattern after every close and returns the hits as a graded list, with the pattern drawn on each chart, so you review setups rather than hunt for them.
Join the waitlist to be invited when sign-ups reopen and see the current Double Bottom list, or browse all 75 patterns.
Double Bottom FAQ
Is a double bottom bullish?
Yes. It is a bullish reversal pattern, though it is not confirmed until price clears the peak between the two lows.
How do I screen for double bottoms?
PatternGrade's double bottom scanner checks every liquid US stock after each close, measuring how closely the two lows align and how well-formed the middle peak is, then grades the result A+, A or B.
Should the second low be exactly equal to the first?
No, and a slight undercut is often the stronger version. A second low that dips marginally below the first flushes out stops and traps late sellers before reversing. What matters is that the two lows are in the same area and that the second one holds. An exact match is neither required nor especially meaningful.
When is a double bottom confirmed?
Conventionally on a close above the neckline, the interim peak between the two lows. Until that level is cleared the pattern is potential rather than realised, which is why PatternGrade reports it as a detected setup with a reference level rather than as a completed reversal.
How far apart should the two lows be?
Usually several weeks to a few months on daily bars. Two lows a few days apart are noise within a single decline; the separation is what shows the level was tested, abandoned, and tested again.
What is the target on a double bottom?
The conventional measured move projects the depth from the lows to the neckline upward from the neckline. PatternGrade draws that as a reference level derived from the pattern's geometry. It is a projection based on the shape, not a forecast, and plenty of confirmed double bottoms never reach it.
Patterns a Double Bottom is mistaken for
- Triple Bottom
- Three tests of support rather than two. If price returns to the same area a third time before clearing the neckline, it is a triple bottom.
- Cup & Handle
- A cup has one rounded low; a double bottom has two distinct lows with a rally between. W versus U is the whole distinction.
- Inverse Head & Shoulders
- An inverse head and shoulders has three lows with the middle one deepest. A double bottom has two lows at roughly the same level. Check whether the middle low is lower.
- Rounded Bottom
- A rounded bottom has no distinct lows at all: it is a smooth curve. If you can point at two separate spikes down, it is a double bottom.
Last reviewed . Structure and grading for the Double Bottom are reviewed against the scanner's own rules.