Investor Glossary-double bottomInvestor Glossary-double bottomInvestor Glossary-double bottomInvestor Glossary-double bottomInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Double Bottom

The HTML to link to this page
 

A double bottom is a chart pattern created when a stock makes a low, rebounds, then retests the same low and rebounds once again. A double bottom chart pattern resembles a "W". A double bottom chart pattern has great significance for a chartist or technical analyst. To a technical analyst the double bottom formation implies that a stock has hit an important support level and is having trouble going lower. For a technical analyst a double bottom chart pattern may indicate that a stock has made a low and is now poised for an upward move. However, a break below the support line created by a double bottom pattern is considered extremely bullish. Double bottom chart patterns can be found on intra-day charts, daily, weekly, monthly, yearly and even longer-term charts. The opposite of a double bottom chart pattern is a double top pattern.



Rate this double bottom definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: inflation, deferred tax, ex-dividend date, 144a, class C shares, debt service coverage, balance sheet, command economy, stock split, reverse mortgage, wholly-owned subsidiary, average price per share, 1035 exchange, Key Rate Duration, margin rate, VIX, open position, covered put, annual return, per diem, required rate of return, retained earnings, irrevocable trust, risk management, LIBOR, deferred revenue, 401a, in escrow, EBITDA, diluted share, minority interest, FICO score, current ratio, quality assurance, implied volatility, FTSE, APR, dividends payable, labor relations, option premium, cancelled check, stock market close, phantom income, ex-dividend, liquidity ratio, limit order, 1031 exchange, real GDP, Zero Cost Collar


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use