Shape and Characteristics
The line connecting the level of the peak between the two lows is called the "neckline." Once the second low forms and the price breaks above the neckline, the double bottom pattern is considered complete, and some view this as a point where a shift toward an uptrend becomes more likely to be recognized.
How to Read It, and What to Watch Out For
A double bottom is only one pattern identified from past chart shapes — its appearance does not guarantee that the price will definitely rise afterward. There are also cases where the price forms two similar lows and then extends further downward, so it is common to check volume and other indicators together before drawing conclusions.