What Does a Double Bottoms Gold Chart Pattern Mean?

Double bottoms xauusd chart pattern is a reversal xauusd chart pattern that forms after an extended downward xauusd trend.

Double bottoms xauusd chart pattern is made up of two consecutive troughs that are roughly equal, with a moderate peak in between the two troughs.

The buy gold signal from this double bottoms xauusd chart pattern market bottoming out gold signal occurs when the xauusd market breaks the neckline to the upside.

In Gold, the double bottoms xauusd chart pattern is an early warning gold signal that the bearish Gold trend is about to reverse.

Double Bottoms Gold Chart Pattern is only considered complete/confirmed once the neckline is broken.

In this double bottoms xauusd chart patterns formation the neckline is the resistance level for the gold price. Once this resistance is broken the xauusd market will move up.

Summary:

• Double bottoms xauusd chart pattern forms after an extended move downwards - gold downwards trend
• This Double bottoms xauusd chart pattern formation indicates that there will be a reversal in the xauusd market
• We buy when xauusd price breaks above the neckline; as explained on the xauusd trading example illustrated and explained below.

What Does a Double Bottoms Gold Chart Pattern Mean?

The double bottoms xauusd chart pattern look like a W Shape xauusd chart pattern, the best reversal gold signal is where the second bottom is higher than the first bottom as shown below.

This means that the reversal gold signal from the double bottoms xauusd chart pattern can be confirmed by drawing an upward gold trend line as shown below. If a gold trader opens a buy gold signal the stop loss will be placed just below this upward gold trend line.

What Does a Double Bottoms Gold Chart Pattern Mean? - What Happens to Gold Price Action After a Double Bottoms Gold Chart Pattern in Gold Trading