Double Bottom: definition and measured success rate

Data as of 31.07.2026 · back-test since 12/2019

A double bottom is a bullish reversal pattern in which price falls twice to roughly the same support level and turns up both times, forming a W shape. The pattern completes when price breaks above the neckline, the interim high between the two lows. In chartval's back-test, it worked in 53 of 100 comparable cases (17,292 occurrences).

Schematic chart of the double bottom pattern

How does a double bottom form?

Sellers push price down to a level where buyers step in. A recovery follows, then a second decline to almost the same level, which again holds. That second successful defense signals seller exhaustion. When price then closes above the neckline, the sequence of lower lows is broken and a new upward move has measurable support behind it.

How reliable is the double bottom?

In chartval's historical back-test across 274 stocks, ETFs and cryptocurrencies, the double bottom reached a 5 percent move in the signal direction before a 5 percent counter-move in 53 of 100 cases (17,292 occurrences evaluated since 12/2019; data as of 31.07.2026). Past statistics are not a reliable indicator of future results.

All market phases53 of 100 · 17,292 cases

In an uptrend55 of 100 · 2,227 cases

In a downtrend51 of 100 · 1,185 cases

In a sideways market53 of 100 · 13,880 cases

Measurement: a case counts as a hit when price moved 5 percent in the signal direction before moving 5 percent against it, based on closing prices, within a maximum of 120 candles after the trigger.

How chartval detects the pattern

chartval identifies double bottoms with confirmed swing pivots: two lows within a volatility-adjusted tolerance, a fresh second low, and a close above the neckline. Every detection states an entry, a target and an invalidation level. chartval scans 274 stocks, ETFs and cryptocurrencies daily; every signal names an entry, a target and the level at which the setup is invalidated.

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Note: All content on chartval is technical-analysis information, not investment advice and not a recommendation to buy or sell. Trading securities and crypto assets involves risk up to total loss. Past pattern statistics are not a reliable indicator of future results.