What is the role of volume in a double bottom pattern?

In a double bottom pattern, volume plays a crucial role in confirming the reliability of the pattern's signal. When a double bottom formation occurs, it generally consists of two troughs at about the same price level, indicating potential reversal from a downtrend to an uptrend. For this pattern to be validated, an increase in volume is typically observed at the second bottom and especially on the breakout above the resistance level between the two bottoms.

The presence of high volume on the breakout indicates strong buyer interest and confirms that the reversal is supported by significant market activity. It suggests that the price movement is not just a temporary fluctuation but rather reflects a fundamental change in market sentiment toward the asset. Thus, volume is integral to assessing the strength and viability of the double bottom pattern, supporting the notion that this pattern could lead to a sustained uptrend.