What's Double Bottoms Chart Patterns?

Trading XAUUSD Identify a Double Bottoms Trading Pattern in XAUUSD Trading

The Best Trading Patterns Tutorial for Beginners - How to Identify and Trade Double Bottoms Chart Pattern

Gold Patterns for Day Trading - Gold Patterns Tutorial

This Double Bottoms trading patterns charts guide explains how to identify xauusd patterns - identifying xauusd chart patterns is the first step when it comes to learning how to trade with Double Bottoms xauusd chart patterns in Gold.

Double Bottoms xauusd trading price patterns commonly form on Gold Trading charts & this chart pattern analysis tutorial explains how to trade & analyze gold charts using Double Bottoms xauusd trading patterns.

Double Bottom Chart Pattern

Double bottoms xauusd pattern is a reversal gold pattern which forms after an extended downward xauusd trend. Double bottoms xauusd chart pattern is made up of 2 consecutive troughs that are roughly equal, with a moderate peak between.

This double bottoms pattern formation is considered complete once xauusd trading price makes the second low & then penetrates the highest point between the lows, known as the neck line. The buy indication from this bottoming out signal occurs when the xauusd market breaks-out the neck line to the upside.

In Gold, this double bottom pattern formation is an early warning signal that the bearish Gold trend is about to reverse. It is only considered complete/completed once the neck-line is broken. In this double bottoms chart pattern formation the neck line is the resistance level for the xauusd price. Once this resistance is broken the xauusd market will move up.

Summary:

• Double bottom xauusd trading pattern forms after an extended move downward
• This Double bottoms xauusd chart pattern formation indicates that there will be a reversal in the xauusd market
• We buy when price breaks-out above neckline point: see below for the explanation.

Double Bottom Chart Pattern

The double bottom chart pattern look like a W Shape, the best reversal gold signal is where the second bottom is higher than the first one as shown below, this means that the reversal can be confirmed by drawing an upwards gold trend line as shown below. If a trader opens a buy trading signal the stop loss will be placed just below this upwards trend line.

W Shaped Double Bottoms Chart Pattern