| Characteristic | Remarks |
| Bearish price trend | The bearish price trend leading to a double bottom is down. |
| Two valleys | You need 2 valleys that bottom near the same price. Near means within about 5% but can never be exact. The bottoms price should look roughly the same. |
| Valley separation | The time between bottoms varies in the chart but 2 to 7 weeks results in the best performance. |
| Volume | Volume is higher on the left bottom than the right but this is just an observation and not a requirement. |
Haw Par forms a double bottom reversal on 12 August 2020 and rebound quite strongly. Then it hit the downtrend resistance and reverse down again. This is an aggressive way of trading the double bottom reversal.
In theory, you should only trade double bottom reversal when price break up of the confirmation line with high volume.
Conclusion
Double bottoms reversal is a great trading indicator as many traders are looking at the left bottom price. Once it is near the previous bottom price, the more aggressive traders will buy first, followed by those who will only buy upon the break up confirmation, by the way, waiting for confirmation is the correct way according to books.
Singapore
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Pattern
Analysis