Education & Information
Sell Signals
Bearish Catapult
A bearish catapult formation occurs when a double bottom follows a triple bottom. This provides confirmation that the triple bottom is following through and a down trend is beginning. The column of Xs following the triple bottom needs to hold below the previous column of Xs. In other words, there cannot be a buy signal between the triple bottom and the double bottom. The significance of this is the higher column of Xs indicates weakening demand. The following double bottom indicates supply is strengthening further.