What Does a Double Bottoms Crude Oil Trading Chart Pattern Mean?

Double bottoms oil chart pattern is a reversal oil pattern that forms after an extended downwards crude oil trend.

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

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

In Oil, the double bottoms oil chart pattern is an early warning oil signal that the bearish oil trend is about to reverse.

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

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

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.

What Does a Double Bottoms Crude Oil Trading Pattern Mean? - What Happens To Oil Trading Price Action After a Double Bottoms Crude Oil Trading Chart Pattern in Crude Oil Trading