Double bottom
Two lows at about the same price, then a close above the high between them: a bullish breakout signal.
The indicator looks for a double bottom, a low that price tests twice before breaking up. With the default 20-bar lookback, it takes the lowest low of the 20 bars that ended 20 bars ago and the lowest low of the last 10 bars, and requires them to sit within the tolerance (2%) of each other. The highest high from about 5 to 14 bars ago must sit more than 2% above that earlier low, and the close must clear that high. It fires only on the first bar where all three hold.
How to read it
- The marker sits on the candle whose close breaks above the middle high, drawn on the price chart.
- The recent low must match an earlier low, and the middle high must sit at least 2% above that earlier low.
- A marker means a two-touch base has broken upward; it does not confirm a reversal.
What it outputs
- Double bottom
- True on the first bar where a two-low base breaks up: the recent low matches an earlier low, the middle high clears it, and the close clears that high. No marker on other bars.
When it fires
On the close of the first bar where the recent low is within tolerance of the earlier low, the middle high is more than tolerance above that earlier low, and the close clears that middle high. It is a bullish breakout from a two-touch base; later bars in the same run stay silent.
Settings
- Max Distance
- How far back the first low sits and how many bars each window covers. Raising it gives the rally more time, so the rally test passes more often, but the middle high covers more bars and is harder to clear. Lowering it leaves less time for the rally.
- Price Tolerance
- Sets how close the two lows must be and how far the middle high must sit above the earlier low. Raising it loosens the match but makes the rally harder. Lowering it eases the rally, the usual blocker at default, but tightens the match.
Pitfalls
- On SPY one-minute bars in September 2026 it fired 0 times in 20,160 bars with default settings, so it is effectively off until you loosen it.
- The rally test needs about 2% from the first low to the middle high within roughly 40 bars. The presets loosen that, but they were not measured on bars, so check their markers.
- The windows overlap: the middle-high window and the recent-low window share five bars, so the middle high is not a clean separate swing.