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InvestHub.com's
Finance Dictionary and Glossary of Investment Terms

double bottom  

Definition 1.

A technical analysis term used to describe a chart on which the price of a security has made two approximately equal bottoms over a period of time. Technical analysts try to buy at one of the bottoms in anticipation of a rise (which would make the shape of a "W" on the chart). opposite of double top.
 

Definition 2.

A term used in technical analysis to refer to the drop of a stock's price, a rebound, and then a drop back to the same level as the original drop.
 

Definition 3.

A charting pattern used in technical analysis. It describes the drop of a stock (or index), a rebound, another drop to the same (or similar) level as the original drop, and finally another rebound.
 

Definition 4.

For technicians, this is when a stock falls, bounces back, falls again to the same level and then rebounds once more. The twice-touched low is considered a support level. The graph of this phenomenon is vaguely like a W.
 
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