What happens to the volume when moving from the left bottom to the right bottom in a double bottom pattern?

In a double bottom pattern, the behavior of volume is significant as it can provide insights into the strength of the price action and the potential for a trend reversal. When moving from the left bottom to the right bottom of this pattern, volume typically decreases. This decline in volume suggests that market participants are less active during the formation of the second bottom compared to the first, which often indicates a lack of conviction among bears.

The first bottom usually attracts more attention and selling pressure, leading to higher trading volumes as the market tests a key support level. However, by the time the price reaches the second bottom, some traders may start to believe that the price won't go lower, which results in reduced selling activity and lower volumes.

This volume behavior is critical in technical analysis because an increase in volume during the breakout from the second bottom is needed to confirm the pattern and provide a stronger signal of a potential bullish reversal. If the volume is not supportive, the breakout may be weak and less valid. Thus, understanding that volume decreases while moving from the left to the right bottom enhances the analysis of trader sentiment and potential market movements following the pattern completion.