Rite Aid (RAD) surges 30% higher as merger chances improve >>> READ MORE

5 Ways to Know a Stock Is Headed Up

Learn to spot these bullish chart patterns -- they never lie

      View All  


double-bottom chart pattern

A double-bottom occurs when prices form two distinct lows on a chart at approximately the same price level. Prices fall to a support level, rally and pull back up, then fall to the support level again before increasing. A double-bottom is only complete, however, when prices rise above the high end of the point that formed the second low.

The double-bottom is a reversal pattern of a downward trend in a stock’s price. The formation marks a downtrend in the process of becoming an uptrend.

Article printed from InvestorPlace Media, http://investorplace.com/2013/07/5-ways-to-know-a-stock-is-headed-up/.

©2017 InvestorPlace Media, LLC