A double bottom is a bullish reversal chart pattern that forms when a stock's price: 1. Falls to a low (first bottom) 2. Rallies to a resistance level 3. Falls again to a low (second bottom) that is roughly equal to the first low 4. Rallies again, breaking above the resistance level This pattern indicates a potential change in trend from bearish to bullish. Key Characteristics: 1. Symmetry: The two bottoms should be roughly equal in price. 2. Depth: The second bottom should not be significantly lower than the first bottom. 3. Volume: The rally between the two bottoms and the breakout should be accompanied by increased volume. Trading Strategy: 1. Buy signal: Buy the stock when it breaks out above the resistance level. 2. Stop-loss: Set a stop-loss below the second bottom. 3. Target: Set a target price based on the chart pattern, such as the height of the pattern added to the breakout price.