04 — Reversal Patterns

Double Bottom#

Bullish — W◐ Heuristic
◆ The PatternTwo troughs at the same level — the "W" formation

The Double Bottom is the bullish mirror of the double top — price tests support twice and bounces. The "W" shape forms with a peak between two troughs. Breakout above the neckline (the middle peak) confirms the reversal.

Target = Neckline + (Neckline − Trough)
A "spring" — where the second bottom slightly undercuts the first before reversing — can be especially powerful.
// Double Bottom — W formation
Key insight: The strongest double bottoms have increasing volume on the second bounce — it shows buyers stepping in more aggressively at the support level.
Pattern bridge: Two bounces off the same floor mirror activation floors in neural nets.
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Double Top
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