This week's question:
DATE: July 31, 2015
Can you discuss key components of a Double Bottom Reversal chart pattern?
A Double Bottom Reversal chart pattern is one of many patterns that can be identified by traders who use technical analysis as part of their decision-making and market forecasting process. The Double Bottom Reversal chart pattern is comprised of two consecutive troughs that are nearly equal with a moderate peak in-between. It is a bullish reversal pattern that typically marks an intermediate or long-term change in trend and is found on bar charts, line charts and candlestick charts. Other key components that play a role in this pattern are volume and breaking resistance. To learn more about a Double Bottom Reversal chart pattern, view this segment of "Ask the Institute."