What Does a Double Bottoms Commodities Pattern Mean?

Double bottom commodity pattern is a reversal commodity chart pattern that forms after an extended downward commodities trend.

Double bottom commodities pattern is made up of two consecutive troughs that are roughly equal, with a moderate peak between the 2 troughs.

The buy commodity signal from this double bottoms commodity chart pattern market bottoming out commodity signal occurs when the commodity market breaks-out the neckline to the upside.

In Commodities, the double bottom commodity pattern is an early warning commodity signal that the bearish commodities trend is about to reverse.

Double Bottoms Commodities Trading Chart Pattern is only considered complete/confirmed once the neckline is broken.

In this double bottoms commodity chart patterns formation the neckline is the resistance level for the commodities trading price. Once this resistance is broken the commodity market will move up.

Summary:

• Double bottom commodity chart pattern forms after an extended move downward - commodities trading downward trend
• This Double bottom commodity pattern formation indicates that there will be a reversal in commodities market
• We buy when commodities trading price breaks out above neck-line: as described on the commodity example illustrated and explained below.

What Does a Double Bottom Commodities Trading Pattern Mean?

The double bottom commodity chart pattern look like a W Shape commodity chart pattern, the best reversal commodity signal is where the second bottom is higher than the first bottom as shown and illustrated below.

This means that the reversal commodity signal from the double bottoms commodity chart pattern can be confirmed by drawing an upwards commodity trend line as shown below. If a trader opens a buy commodity signal the stop loss will be placed just below this upward commodity trend line.

What Does a Double Bottom Commodities Trading Chart Pattern Mean? - What Happens To Commodity Trading Price Action After a Double Bottoms Commodities Trading Chart Pattern in Commodity Trading