double bottom forming, page-5

a double bottom is not a difficult pattern to comprehend.... and it happens quite often

1. A stock in a long downtrend finally finds a bottom
2. From here a short lived rally ensues which then finds resistance
3. The stock is then sold down (usually on low volume)
to the same level as the original bottom
4. A second rally on stronger volume pushes the stock past the previous resistance
5. Once this resistance is broken the second time there is a good probability of a sustained rally.


It's all there in the link.