What is the Double Bottom Pattern
The Double Bottom is a multiple candlestick chart pattern that forms at the end of a downtrend and indicates that a bullish reversal is taking place. This pattern consists of four candlesticks.
Understanding the Double Bottom Pattern
The Double Bottom candlestick pattern consists of four candlesticks. The first candlestick is a bearish candle and indicates that the market is in a downtrend. The second candlestick is a short bullish candle and forms within the body of the first candle. The third candlestick is a short bearish candle that closes at the opening of the second candle. The fourth candlestick is a long bullish candle that indicates that a bullish reversal has taken place.