The double bottom is one of the chart patterns used in technical analysis. The double bottom is characterized by : Fall in price … followed by a rebound … followed by another drop to the level … close to the previous drop . This pattern resemblance English alphabet W . The significance of the double bottom: It forms during the bear market . The volumes are usually high in the first bottom (low) but the volumes will be low at the second bottom (low) of the rally. Most of the traders will be using the double bottom as the entry point as they anticipate that the market will reverse from this point. Here is an example of ICICI Bank on a daily chart. ICICI bank was falling from the last week of January 2018 and formed a bottom A with high volumes in the first week of April 2018. ICCI Bank rebounded from here and again fell clo...
