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Volume should be higher after the secondĀ bottomĀ or at the breakout.The reversal is composed by two consecutive bottoms with approximately the same equal lows and itās the perfect position to take a long when it breaks out the resistance level.
| M | T | W | T | F | S | S |
|---|---|---|---|---|---|---|
| 1 | 2 | 3 | 4 | 5 | ||
| 6 | 7 | 8 | 9 | 10 | 11 | 12 |
| 13 | 14 | 15 | 16 | 17 | 18 | 19 |
| 20 | 21 | 22 | 23 | 24 | 25 | 26 |
| 27 | 28 | 29 | 30 | 31 | ||
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Hi,
Please consider the below points also.
Since the double bottom is a reversal pattern, the trend prior to the first bottom (A) should be Bearish.
Also, there should be at least 1-month gap between two bottoms.