Group: Reversal
Description: Two consecutive lows at the same level after a downtrend, with a corrective bounce in between. A breakout above resistance confirms the reversal.
Key Characteristics:
- Two bottoms at the same level
- The peak between them acts as resistance
Trading Logic: Buy on breakout above resistance. Stop-loss below the second bottom. Target equals the pattern’s height.
Example: Often forms in crypto after heavy sell-offs.
Conclusion: A reliable bottom signal and potential start of growth.
