Double bottoms

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Double bottoms is a market reversal set up, that occurs when the market reaches a low, only to be pushed back high by traders (buyers). Why? because buyers do not think the prices should go any lower, why? because they deem prices to have been too low. Now prices are being demanded by buyers. Hence, immense buying will happen as traders are looking to buy when prices are at their lowest and sell when they are high. When the market makes a double bottom, it signals that it has reached a significant support where there is greater buying power than selling power.

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