summarizes: http://www.trending123.com/patterns/double_bottom.html
-----Confirmation-----
"when prices rise above the high end of the point that formed the second low"
"If an investor waits for a valid breakout, however, the failure rate declines to 3%."
-----Formation-----
"The two lows should be distinct...the second bottom can be rounded while the first should be distinct and sharp."
"prices should not drift below the left low of the pattern."
-----Volume-----
"The second bottom returning back to the previous low (plus or minus 3%) should be on lower volume than the first."
"Volume tends to be downward as the pattern forms. Volume does, however, pick up as the pattern hits its lows. Volume increases again when the pattern completes, breaking through the confirmation point."
-----Time-----
"best gains come from formations where bottoms are approximately 3 months apart."
-----Pullbacks-----
"A pullback after the breakout is usual for a double bottom...in 68% of double bottom patterns, price will throwback to the breakout price. "
-----Target-----
"Calculate the height of the pattern by subtracting the lowest low from the highest high in the formation. Then, add the height of the pattern to the highest high. In other words, an investor can expect the price to move upwards at least the distance from the breakout point plus the height of the pattern."
