Double Bottom is a technical analysis term. It refers to the chart pattern that resembles a “W”. It’s formed when a price drops and rebounds consecutively from a particular level. This pattern is bullish in nature as it demonstrates a weakness in a selling trend and pre-indicates a potential buying trend in the market. It is exactly the opposite of a double top pattern.
For example, if Gold prices drop and rebound from $16000 twice. That makes $1600 a double bottom level, which means that we may see another pullback or buying behavior if the prices test this level in the future.