A Double Bottom, also known as a W pattern, is a bullish reversal pattern that generally appears after a downtrend. It forms around two successive lows separated by an intermediate high that defines the neckline.
The pattern is considered confirmed when price breaks above the neckline. The theoretical target is then calculated by projecting the height of the Double Bottom above the neckline. A pullback to the neckline may also occur after the breakout.
The Double Bottom / W Pattern Indicator identifies and displays this pattern directly on ProRealTime charts.
When a Double Bottom is detected, different elements can be displayed to visualize the pattern and its development:
The different graphical elements can be displayed or hidden according to your preferences.
Many parameters allow you to adapt the display to your own criteria. All settings can be adjusted directly from the indicator's “Configuration” menu in ProRealTime, without modifying the code.
To scan the market for stocks showing this setup, use our Double Bottom / W Screener.
Adjustable validation criteria:
Available filters:
Display Options:
Video presentation:
Details of available settings:
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Disclaimer
Our proposed tools (indicators and screeners) are not investment advices but tools allowing everyone to find specific graphic configurations. The automated trading systems offered have been developed and optimised using historical data; however, past performance is no guarantee of future results. Investing in the financial markets involves risks up to and including the total loss of capital. The user of the proposed tools understands and accepts that the use of these tools is under his sole and entire responsibility. P2C Trading declines all responsibility in the use of the tools and the consequences that would result.
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