The Double bottoms formation is a minor image of the double top pattern. This is the reversal pattern whereby a bottom is formed on high volume, followed by rally of at least fifteen percent, subsequently followed by a second bottom on lower volume. Bottoms should be at least a month apart, and the reversal is confirmed when second rally crosses the peak of the first rally. The neckline is a strong resistance for the price level, but when the price penetrated it, the BUY signal is confirmed.

Examples of Double Bottoms:

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