Double bottom


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Double bottom

A term used in technical analysis to refer to the drop of a stock's price, a rebound, and then a drop back to the same level as the original drop. The pattern looks like the letter W. In technical analysis, this pattern is considered a positive for the stock. The stock has bottomed out and the technical analysts would expect the stock to appreciate afterwards.

Double Bottom

In technical analysis, a situation in which the price of a security hits a low, rises 10-20%, and then hits roughly the same low before rising again. A double bottom in a relatively short period of time indicates that the low is a price support for the security. A situation where trading volume rises as the security increases from the second bottom is thought to be a bullish indicator. See also: W-shaped recovery.

double bottom

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double bottom
In technical analysis, a chart formation indicating stock price recoverability over time. It is characterized by a drop in a stock's price to a low level, a recovery in price, and a second decline to the previous low price. If the stock price recovers a second time, the low price reached at the two bottoms becomes a level of support for the stock. It is a bearish sign if the stock subsequently falls through this level. Compare double top.

Double bottom.

Double bottom is a term that technical analysts use to describe a stock price pattern that, when depicted on a chart, shows two drops to the same dollar amount separated by a rebound.

For example, if a stock that had been trading at about $28 a share dropped to $18, rebounded to trade at about $22 for several weeks, and then dropped to $18 again, analysts would identify $18 as a double bottom.

An analyst observing this pattern might conclude that investors were comfortable paying $18 for the stock, and that the price might not drop below that level in the near term. In technical terms, the analyst would say that there was support for the price. However, there's no guarantee that it might not drop further and hit a new low.

References in periodicals archive ?
The rally during the 27 September session extended into the 28 September Asian and European sessions pushing above 1.29, and coincidentally breaking above the declining trend line going back to the September high of 1.3170 where the market had a Double top in the 1H chart the same "size" as the current Double Bottom.
That was the idea from the start--to do well by doing good--the "double bottom line." To be a socially responsible business practice.
For these variants of contact of metal plates the tests were conducted on especially prepared samples of metal plates simulating the construction of the double bottom. The laboratory test in the first variant of plate contact gives good results for detecting corrosion sources from outside bottom.
On the other hand, more and more businesses are beginning to embrace the concept of the "double bottom line" as a driver for their operations and relationships.
Dubbed "double bottom line" funds because social and environmental benefits, not just economic gain, are prominent features of the expected return, smart growth private equity has enticed corporations--once wary of such investments for fear of being branded as slumlords--with superior rate returns and tax incentives.
The EU rules also allow for an exception up to 2015 (or 25 years old) for single-hull vessels in the 2 and 3 categories that are double-walled or have a double bottom. As for the ban on carrying heavy grades of oil, it has been agreed that "further technical discussions" will be required at the December meeting, particularly in relation to the physical properties of heavy grades of oil.
No personnel were said to have been in danger although the incident resulted in a leakage of seawater into the double bottom dry tank area.
The cocaine was apparently concealed in the bag's double bottom and is valued at between USD330,000 to USD400,000 according to Xinhua.
Ten years ago, when Tan-Toya and her husband were renovating their home, they found a double bottom in a closet in the bathroom.
11 after flying from the Netherlands via Germany, is suspected of trying to smuggle the marijuana in a bag with a double bottom, police said.
A passenger ship usually has a double bottom - a second steel "skin" that provides extra protection in case a rock or iceberg punctures the outer hull (see miniposter, p.
The tanker has a double bottom and double sides in the area of ??cargo tanks and processing installations.