VideoCharts7 min read
What the RSI indicator actually tells you (and what it doesn't)
RSI measures how stretched a recent move is on a 0 to 100 scale. It is useful for timing, useless for prediction, and misread by most beginners.
Technical analysis
Double bottomW shape ka chart pattern
A chart pattern where price falls to a low, bounces, falls again to roughly the same level and rises, forming a W that can signal a bottom.
A double bottom forms when price falls to a level, rebounds, falls back to about the same level, holds again, and then rises through the peak between the two lows. On a chart it looks like the letter W. The idea is that sellers tried twice to push through a support level and failed, which hints that buyers are stronger there. The pattern is only complete when price closes above the middle peak, called the neckline; before that it is just a range. Suppose SBI drops to ₹740, bounces to ₹775, slides back to ₹745 and then rallies past ₹775 on good volume. A pattern trader might enter there with a stop loss below ₹740. A measured target is often the height of the pattern projected upward, but that is a guide, not a promise. Many double bottoms fail, especially in a strong downtrend.
Related terms
Lessons that use this term
VideoCharts7 min read
Candlestick patterns for beginners: the five worth learning first
A candle is four prices drawn as one shape. Learn to read the shape first, then five patterns that only mean something at the right place on the chart.
Charts7 min read
Support and resistance: how to find the levels that matter
Support and resistance are the prices where the market has changed its mind before. Here is how to find the ones worth marking and how to use them with a stop.