Double Bottom Pattern

How to identify a double bottom

• A prior downtrend for the pattern to reverse.
• First low, followed by a bounce.
• Second low near the level of the first — often within a few percent.
• Neckline: the high of the bounce between the two lows.
• Enough time between the lows. Two lows a few sessions apart are usually just noise.

Is a double bottom bullish or bearish?

Bullish. Price tested the same low twice and held; a close above the neckline confirms that buyers took control at that level.

Price target

Take the height from the lows up to the neckline and project it upward from the breakout point.

When the pattern fails

A close back below the neckline after the breakout, or a drop below both lows, invalidates the pattern.

How has this setup performed historically?

Win rate = share of occurrences where the stock beat SPY over the window in the direction the signal predicted — for a bearish setup, a win means it underperformed. Measured on our own detections, which puts the coin-flip line at 50%. Sample sizes are small; treat these as context, not as an edge.

Recent Double Bottom detections

From our daily published list over the past 12 months, newest first. Past detections, not recommendations — open a symbol for its chart and current status.

US stocks that have formed the Double Bottom most often

Counts are past detections by our scanner, not signals firing today. Follow a symbol through to its own page for the current reading.

We have not recorded enough Double Bottom detections yet to list symbols here.

Frequently asked questions

Why is a double bottom called a W pattern?

Because of its shape: down, up, down to about the same low, then up through the neckline traces a W.

What is the difference between a double bottom and a double top?

They are mirror images. A double bottom has two lows and is bullish; a double top has two peaks and is bearish.

Further reading

• Guide: how the Double Bottom works
• Backtest: we tested 1,643 of our own pattern calls against SPY
• Browse every symbol we cover

Other patterns