A forex double bottom is a classic bullish reversal pattern that forms after a decline and signals that sellers are losing control.

A forex double bottom is a classic bullish reversal pattern that forms after a decline and signals that sellers are losing control. Visually, it looks like a “W”: price makes a low, rebounds, retests a similar low, and then pushes higher. The key level is the neckline—the swing high between the two lows. Many traders wait for a decisive breakout and close above the neckline to confirm the pattern and reduce false signals. Effective trade planning often includes placing a stop-loss just below the second bottom and using a measured move or recent structure for targets. Confluence can improve odds: momentum divergence (e.g., RSI), rising volume on the breakout, or alignment with a higher-timeframe support zone. The double bottom can appear on any timeframe, but reliability generally increases as timeframes get higher. Common mistakes include jumping in before confirmation or using overly tight stops. Mastering this pattern helps you anticipate potential trend reversals, build systematic entries, and manage risk with clearer rules.

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