When is the Double Bottom confirmed?

A candle CLOSE above the peak (resistance).

When is the Double Bottom invalid?

Price closes below the lower of the two bottoms.

BullishReversalBeginner

Two failed attempts to break the same low. The floor holds.

Verdict: SkipBitcoin 4H: 20 trades, won 45%, avg trade −0.8% vs random day +0.9%. Backtest

Bottom 1

Double Bottom: textbook shape, step by step

Price sells off hard and hits a low. Then buyers step in and bounce it.

step 1/7

Direction	Long (buy)
Entry	A candle CLOSE above the peak (resistance).
Cancelled if	Price closes below the lower of the two bottoms.
Target	Same height, projected from the breakout

3 common mistakes

same rules every time · equal size · no fees · method

Market	Trades	Won	Avg trade	Random day
Bitcoin · 4H · 2017-2026	20	45%	−0.84%	+0.93%
US large caps (50) · 1D · 2016-2026	160	59%	+0.39%	+1.64%

Verdict: SkipLost money on Bitcoin. On stocks it made a little, but a random day made four times more.

pattern −17%random +19%

Bitcoin 4H: pattern −17% vs random day +19% over 20 trades

pattern +63%random +263%

US large caps (50) 1D: pattern +63% vs random day +263% over 160 trades

Breakout Jan 8, 2023, exit Jan 11, 2023 (target)+4.54%

Same floorResistanceBottom 116,256 · Dec 19, 2022Peak17,061 · Dec 20, 2022Bottom 216,333 · Dec 30, 2022Breakout

Bitcoin 12H, real candles from Dec 14, 2022

Breakout Oct 21, 2022, exit Nov 21, 2022 (target)+7.42%

Same floorResistanceBottom 1134.10 · Sep 1, 2022Peak145.54 · Sep 27, 2022Bottom 2134.09 · Sep 30, 2022Breakout

AbbVie 1D, real candles from Jul 26, 2022

trapBreakout May 4, 2022, exit May 5, 2022 (stop)−6.42%

Same floorResistanceBottom 137,386 · May 1, 2022Peak39,167 · May 2, 2022Bottom 237,518 · May 3, 2022Breakout

Bitcoin 4H, real candles from Apr 28, 2022