When does the double bottom work best?

In Fred's tests the best version was on USDJPY, on the 1-hour chart, in the afternoon (noon–4pm UK), after price has been rising. It averaged +22% of the risk per trade over 139 trades, and made money in both 2020–23 and 2024–26.

Tested patterns · Buy setup

Does the double bottom work? Tested on 98,075 trades

Q: Does the double bottom work?

Not on its own, but 5 filtered versions did. Across 98,075 double bottom trades on 8 markets from 2020 to 2026, after real broker spreads, the setup averaged −5% of the risk per trade (−£0.48 per £10 risked) and reached a 1.5× take profit 21.6% of the time.

Not on its own, but 5 filtered versions did. Across 98,075 double bottom trades on 8 markets from 2020 to 2026, after real broker spreads, the setup averaged −5% of the risk per trade (−£0.48 per £10 risked) and reached a 1.5× take profit 21.6% of the time.

What it is: Two lows at about the same level, a bounce between, and price now closing above the bounce high.

Older years vs recent years

2020 to 2023: −4% per trade over 55,400 trades. 2024 to 2026: −6% per trade over 42,675 trades.

The versions that made money

These made money in both 2020–23 and 2024–26, which is how Fred rates a setup green. Each uses its own best stop and take profit.

USDJPY · 1-hour chartafternoon (noon–4pm UK), after price has been rising+22% per trade · 8% hit target · 139 trades

USDJPY · 15-minute chartafternoon (noon–4pm UK), after price has been rising+16% per trade · 43% hit target · 386 trades

Gold (XAUUSD) · 15-minute chartmorning (7am–noon UK), after price has been rising+14% per trade · 12% hit target · 481 trades

US30 (Dow) · 5-minute chartevening (4pm–9pm UK), after price has been rising+6% per trade · 11% hit target · 967 trades

GBPJPY · 15-minute chartovernight (midnight–7am UK), after price has been rising+8% per trade · 9% hit target · 701 trades

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By market

Market	Trades	Per trade	Hit take profit
NAS100 (Nasdaq)	3,403	+3%	22.6%
Gold (XAUUSD)	12,956	+0%	24.7%
US30 (Dow)	12,258	−1%	23.2%
USDJPY	13,350	−2%	22.2%
GBPJPY	14,289	−7%	18.9%
GBPUSD	13,625	−8%	20.9%
AUDUSD	14,049	−8%	20%
EURUSD	14,145	−8%	21.4%

By timeframe

Chart	Trades	Per trade	Hit take profit
5-minute	69,839	−7%	20.5%
15-minute	22,697	−1%	24.1%
1-hour	5,539	+3%	24.2%

How Fred tested it

Every time the setup appeared on MT5 price history from 2020 to 2026, Fred entered at the next candle's open, paid the real spread, placed the stop just past the pattern (plus half an average candle) and a take profit 1.5 times the risk. If neither was hit within 48 candles, the trade closed at the last price. "Per trade" is the average result as a share of the amount risked.

Back-tested results, not live trading. Past results don't guarantee future ones. Checked 28 October 2026. All tested patterns · AI chart tools compared