A worked example that explains the rule, not a stock price. The circle marks the first close beyond the level. The blue line is the target. The orange line is the invalidation. Prices are in the right-hand column, and sessions sit under the volume bar.Hollow green candles closed above their open, and filled red candles closed below it.
Numbers in the example chart
From the same calculation that draws the shape and writes the "Measuring the target" section below.
Trigger level
$58 · at the close of session 53
Target
66$
Invalidation
49$
Pattern height
8$
Chart span
64 sessions
What it is
Two bottoms at roughly the same level with a peak between them. A buyer defended the same price twice and refused to sell below it.
A close below the lower of the two lows, with a margin.
Reading it stage by stage
First lowPrice reaches a floor and rebounds.
Middle peakSets the breakout level that confirms the pattern.
Second lowA defense of the same price on lower volume · the seller is exhausted.
BreakoutA close above the middle peak on high volume. The stop goes below the lower of the two lows, with a margin, not at their edge.
Recognition rules
The two lows are within 3% of each other in depth.
A meaningful middle peak between them.
Volume at the second low is lower · the seller is exhausted.
Volume jumps when the middle peak breaks to the upside.
Confirmation is a close above the middle peak.
Measuring the target
The distance from the low to the middle peak is added to the peak: a low at $50 and a peak at $58 ⇐ a target of $66.
Where it fools you
A second low that pierces the first slightly and then rebounds (Spring) shakes out holders of stops just under the low · place the stop below the lower of the two lows with a margin, not right at its edge.
Open the daily timeframe for any symbol and draw the pattern yourself. Your drawing is saved per symbol in your browser, and the terminal does not name or detect the pattern.
━ LevelNeckline peak
⇕ MeasureTarget equals pattern height
We do not detect chart patterns with a numeric rule: telling them apart takes judgment on the chart. Candlestick patterns with a numeric rule are detected daily by the candlestick pattern scanner.
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