Double Bottom is a Bullish Pattern

A double bottom has seven elements: initial downside, first bottom, upside, top, downside, second bottom and final upside. The low of a downside forms the first bottom. Then prices rise to form a top and then fall to form a second bottom. Finally, a second upside occurs to complete the pattern. A double bottom is a bullish pattern. Some double bottoms look like the letter W.

Pier 1 Imports (PIR), a specialty retailer with a volatile price pattern, formed three double bottoms from 1998 through 2003.