What is a double bottom pattern?
A double bottom pattern is formed on a chart of prices when the price comes down to test a previous level of support.
On the chart it appears as two valleys, with equal or nearly equal lower values. It is considered a reversal pattern because after the second valley and the second bottom have formed price will turn higher, and an uptrend will develop once the price moves beyond the upper boundary of the double bottom formation.
The double bottom pattern often develops at the end of a bear market, and marks the transition from bear market to bull market.