Is a Double Bottom Chart Pattern Bullish or Bearish?

A double bottom chart pattern has a W shape and it occurs at a market bottom hence its name double bottom chart pattern and it signals a bullish xauusd price reversal in the xauusd trading market.

Once a double bottom chart pattern is confirmed then the xauusd market will be considered to be bullish, therefore a double bottoms is bullish.

Double Bottoms Trading Pattern

Double bottom xauusd pattern is a reversal gold pattern which forms after an extended downwards xauusd trend. Double bottoms xauusd chart pattern is made up of 2 consecutive troughs which are roughly equal, with a moderate peak between.

This double bottoms pattern formation is considered complete once xauusd price makes second low and then penetrates the highest point between lows, called the neck line. Buy indication from this bottoming out signal occurs when the xauusd market breaks-out the neckline to the upside.

In Gold, this double bottom pattern formation is an early warning signal that the bearish Gold trend is about to reverse. It is only considered complete/completed once the neck-line is broken. In this double bottoms chart pattern formation the neck line is resistance level for xauusd price. Once this resistance is broken the xauusd market will move up.

Summary:

• Double bottoms xauusd trading pattern forms after an extended move downward
• This Double bottoms xauusd pattern formation indicates that there will be a reversal in the xauusd market
• We buy when price breaks out above neck-line point: see below for an explanation.

Double Bottoms Pattern - Is a Double Bottom Chart Pattern Bullish or Bearish?