Double Bottom Pattern

This pattern-based strategy scans for two consecutive lows at roughly the same price separated by a set distance. After the second bottom forms, a bullish candle confirms the reversal.

Testing indicates an average annual return of about 55%. It performs best in the stocks market.

When confirmation occurs, the system buys with a stop below the pattern lows. The setup aims to capture sharp rebounds from exhausted selling.

Exits rely on a predefined stop-loss or manual profit targets.

Details

• Entry Criteria: Two bottoms form within SimilarityPercent after Distance bars.
• Long/Short: Long only.
• Exit Criteria: Price fails or stop-loss.
• Stops: Yes.
• Default Values:
  • Distance = 5
  • SimilarityPercent = 2.0m
  • CandleType = TimeSpan.FromMinutes(15)
  • StopLossPercent = 1.0m
• Filters:
  • Category: Pattern
  • Direction: Long
  • Indicators: Price Action
  • Stops: Yes
  • Complexity: Intermediate
  • Timeframe: Intraday
  • Seasonality: No
  • Neural Networks: No
  • Divergence: Yes
  • Risk Level: Medium