What Does a Double Bottoms Crude Oil Pattern Look Like?

Double Bottom Crude Oil Trading Chart Pattern

Double Bottoms Crude Oil Trading Chart Pattern is a Bullish Crude Oil Trading Pattern - Double Bottoms Pattern is a Bullish Oil Trading Signal Pattern

Summary:

• Double bottoms oil pattern forms after an extended move downwards – oil downward trend
• This Double bottoms oil pattern formation indicates that there will be a reversal in crude oil market
• We buy when crude crude oil price breaks-out above the neckline: as explained on the oil example shown below.

What Does a Double Bottoms Crude Oil Trading Pattern Mean?

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

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

Technical Analysis of Double Bottoms Crude Oil Trading Pattern - Example of Double Bottoms Crude Oil Trading Chart Pattern