A Double Bottom is a chart pattern used in trading that signals a potential reversal in a downtrend. It appears after a significant price decline and consists of two distinct low points, suggesting that the asset has found support at a particular price level.The first low forms when price drops and reaches a support point, followed by a temporary rebound. The price then declines again to the same or slightly lower level, forming the second low before rising again. This indicates that sellers have exhausted their momentum, and buyers are starting to step in.Traders often look for confirmation of this pattern by observing a rise in price that exceeds the peak between the two lows. This breakout suggests a shift in sentiment and can signal a bullish trend, making it an attractive entry point for investors. Overall, the Double Bottom pattern is considered a strong indicator of potential upward movement in an asset’s price.