A double bottom has two similar lows forming a W shape. A clear bounce between the two lows creates the neckline; a breakout above the neckline confirms the pattern.
Strong buying support was found at the same price level twice, showing significant demand there. After the second test fails, bulls gain confidence; breaking the neckline triggers a large influx of buyers.
Enter long on a high-volume breakout above the neckline (win rate 73%). Stop-loss below the second low. Target = W height (neckline to low) added to the breakout point.
The two lows don't need to be identical — within 3% is acceptable. A second low slightly higher than the first strengthens the signal. Volume expansion on the neckline breakout is crucial.