Double Bottom

The tell: Two matched lows, lighter volume on the second test, then the neckline snaps.

What it looks like

Two distinct lows in the same area with a bounce between them; the second test comes in on lighter volume.

Why it works

Sellers spent themselves on the first low. The failed second push shows demand absorbed the supply, and shorts cover on the neckline break.

Entry

Break of the neckline — the bounce high between the two lows.

Stop

Below the two lows.

Target

Neckline plus the depth of the pattern.

How it fails

Second low undercuts the first on rising volume — that's continuation down, not a bottom.

Reading it in a textbook is not the same as spotting it live. Drill the double bottom on charts generated fresh every time, or try today’s five.