**Trading"Double bottom"Pattern is a technical analysis term commonly used by investors to predict possible reversal signals in the market. Let's take a look at how to identify a double bottom pattern?
First, we need to find a downtrend. Only in a clear downward trend,"Double bottom"Patterns can be formed. The two lows in the double bottom pattern are both important lows at the present of the first of the world, usually with a gap of time between them.
The highest point after the first touch low** is considered"Neckline", if the market **again** to the low (second bottom) and then *** breakout"Neckline"Then, the full formation of the double bottom shape is confirmed.
In addition, the formation of a "double bottom" pattern is often accompanied by a change in volume. When the first bottom is formed, the volume usually rises; And when ** rises to the neckline, the volume will decrease again; Finally, when the second bottom and neckline are broken, the volume rises again.
While the "double bottom" pattern is seen as a classic reversal signal, this does not mean that once a "double bottom" is confirmed, it will *will**. In practice, investors also need to make comprehensive judgments and make decisions based on other technical indicators and market fundamentals. Investment** is inherently risky, so investors should be cautious when investing in the market.