Double bottom looks like the letter “W”. A twice hit low is considered a support level.
The first bottom advance should be a 10% to 20% drop, then the second bottom should form within 3% to 4% of the previous low, and the volume on the subsequent rally should increase.
A double bottom pattern always follows a major or minor downtrend in a particular security and signals a reversal and the start of a potential uptrend.
The Accumulation/Distribution Line (A/D) measures the supply and demand of an asset or security by looking at where price closed in a period range and then multiplying that by volume.
A bullish engulfing pattern is a candlestick pattern that forms when a small black candlestick the next day is followed by a large white candlestick whose body completely overlaps or engulfs the body of the previous day’s candlestick.
A cup and handle is a technical charting pattern that resembles a cup and handle, where the cup is shaped like a “U” and the handle is slightly offset downwards.
The Directional Movement Index (DMI) is a technical indicator that measures both the strength and direction of price movement and is designed to reduce false signals.
Donchian Channels is a technical indicator designed to identify bullish and bearish extremes that encourage reversals, as well as up and down breakouts, breakouts and emerging trends.
The Double Exponential Moving Average (DEMA) is a type of technical indicator used to identify a potential uptrend or downtrend in the price of a stock or other asset.
The Dow Theory is a technical framework that predicts that a market is in an uptrend if one of its moving averages rises above a previous important high, followed or followed by a similar rise in the other moving average.
Elliott Wave Theory is a form of technical analysis that looks for recurring long-term price patterns associated with constant changes in investor sentiment and psychology.