Double bottom is a very common chart pattern, as its name indicates, it consists of two bottoms, and these two bottoms need to be in a relative flat price level. One of the bottom can't be much higher or lower than the other.
What is a 'Double Bottom'
A
double bottom is a charting pattern used in technical analysis. It
describes the drop of a stock or index, a rebound, another drop to the
same or similar level as the original drop, and finally another rebound.
The double bottom looks like the letter "W". The twice-touched low is considered a support level. Source: https://www.investopedia.com/terms/d/doublebottom.asp
This indicator will detect and highlight double bottom pattern automatically on chart and alert you via SMS, email and sound.
Features:
Adjust the number of bars used to form each bottom.
Check if the first bottom is the highest in a given number of bars
Adjust the number of bars between two bottoms.
Switch of alert.
It works on all timeframes and any symbol. It will draw a line right after the pattern is formed.
You can also load more than one with different inputs to get more results on chart.
The Strength input is the number of bars used to form each bottom, it's the number of bars on the left and right side of the swing high and low.
For example, if you set it to 5, the cyan line will be drawn at bar A, it also alerts at this bar.
The Range input is used to check if the first bottom is the highest high in a given number of bars, if you set it to 60, then High A(in the pic above) is the highest high for 60 bars on its left side.
The double bottom pattern is not always symmetrical, luckily we can use the input “# of bars between 2 bottoms” to filter out some unwanted ones. If you only want a pattern when the two bottoms within a small range, then set this input to a small number such as 10.
It's suggested to load more than one of this indicator with different input set to get more results.
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