The Double Bottom is the bullish mirror image of the Double Top. Price falls to a support level, bounces, falls again to the same support, and holds — confirming that buyers are strongly defending that price. The pattern completes when price breaks above the peak between the two bottoms.

Pattern Diagram

Support Neckline Bottom 1 Bottom 2 Breakout ↑ Target = Height
Two equal lows at support → Break above neckline = target equal to pattern height

Key Characteristics

  • Both bottoms should touch approximately the same price level (within 1–3%)
  • The rally between bottoms should be meaningful (at least 5–10%)
  • Second bottom often forms on lower volume (selling exhaustion)
  • Neckline breakout must be on high volume to confirm

Price Target

Double Bottom Target Target = Neckline + (Neckline − Support Level) Example: Support ₹400, Neckline ₹450 Target = 450 + (450 − 400) = ₹500

Trading the Double Bottom

Entry: Buy on neckline breakout (close above neckline on high volume)
Stop Loss: Below the second bottom
Target: Neckline plus pattern height

Highest conviction signal: Second bottom forms with bullish RSI divergence (RSI makes higher low while price makes same low) + above-average volume on neckline break
The Double Bottom is extremely common on NSE stocks after sharp corrections. Watch for it on large-cap stocks after a 20–30% correction from highs. The second bottom testing the same level as the first, holding, and then breaking the neckline on volume has historically provided excellent risk-reward entries.