TRADING GLOSSARY
Double bottom
A double bottom is a chart pattern in which price reaches two similar lows separated by a rebound, usually after a downward trend. A subsequent break above the intervening high is commonly interpreted as a possible bullish reversal, though it does not ensure further gains.
EXAMPLE
In a hypothetical example, price falls to 80, rebounds to 88, revisits 80 and then rises above 88, completing a double-bottom pattern.
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Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Glossary definitions are general education only and are not investment advice. Risk disclosure