Double Bottom

A charting pattern used in technical analysis. It describes the drop of a stock (or index), a rebound, another drop to the same (or similar) level as the original drop, and finally another rebound.

Double Bottom

The double bottom looks like the letter "W". The twice touched low is considered a support level.

Most technical analysts believe that the advance off of the first bottom should be 10-20%. The second bottom should form within 3-4% of the previous low, and volume on the ensuing advance should increase.


Investment dictionary. . 2012.

Look at other dictionaries:

  • Double bottom — Single hull, Double bottom, and Double hull ship cross sections. Green lines are watertight; black structure is not watertight A double bottom is a ship hull design and construction method where the bottom of the ship has two complete layers of… …   Wikipedia

  • double-bottom — /dub euhl bot euhm/, n. See tandem trailer (def. 1). * * * doubˈle bottˈom or double bottom lorry noun An articulated lorry pulling a second trailer (also drawbar outfit) • • • Main Entry: ↑double …   Useful english dictionary

  • double bottom — A term used in technical analysis to refer to the drop of a stock s price, a rebound, and then a drop back to the same level as the original drop. Bloomberg Financial Dictionary double top, bottom A bar chart formation that signals a possible… …   Financial and business terms

  • double bottom — In chartist analysis, the situation in which the prices of a security fall, then rise, then fall again to the same level, producing a W pattern on a graph. This pattern is thought to indicate that the security has much support at the price at the …   Big dictionary of business and management

  • double bottom — noun 1. : the space in a ship between the inner bottom and the shell plating 2. : a market decline on the stock exchange characterized by two successive low points and regarded by chart readers as a prelude to a recovery compare double top …   Useful english dictionary

  • double bottom — Compartments at the bottom of a ship between inner bottom and the shell plating, used for fresh water, ballast water, fuel oil, etc …   Dictionary of automotive terms

  • double bottom — having two bottoms, having a false bottom (of a suitcase, briefcase, etc.) …   English contemporary dictionary

  • double-bottom — /dub euhl bot euhm/, n. See tandem trailer (def. 1). * * * …   Universalium

  • DOUBLE BOTTOM — Кривая цены отобразила букву W, в которой цена опустилась дважды и остановилась на (или возле) таких же низах …   Малая энциклопедия трейдера: глоссарий к книге

  • double bottom —  Stock market chart with two declines followed by a recovery …   American business jargon

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