The double bottom chart pattern is a bullish reversal pattern commonly found in financial markets. It is formed after a downtrend and signals a potential trend reversal to the upside. The pattern consists of two troughs (or bottoms) that are roughly equal and are separated by a peak or a brief rally. Here are the key components of a double bottom pattern:

1. First Trough (Low): The initial phase of the pattern is marked by a significant downtrend, leading to a low point, or trough. This trough represents a level where selling pressure has temporarily exhausted, and some buying interest may be entering the market.

2. Rally or Peak: Following the first trough, there is a rally or upward movement in prices. This rally is typically not as strong as the initial downtrend but can be significant enough to signal a potential reversal.

3. Second Trough (Low): After the rally, prices decline again to a level near the same as the first trough. This forms the second trough, and it is important that the two troughs are approximately at the same price level. This signifies that the selling pressure has been tested and rejected twice at that level.

4. Neckline: The line connecting the peaks between the two troughs is called the neckline. It acts as a resistance level that the price needs to break through for the pattern to be confirmed.

5. Breakout: The bullish signal is generated when the price breaks above the neckline. This breakout suggests that buying interest has overcome the resistance, and the trend may be reversing to the upside.

Traders often look for increased volume during the breakout to confirm the validity of the pattern. Additionally, it's essential to consider other technical indicators and market conditions for confirmation before making trading decisions based solely on the double bottom pattern.

As with any technical analysis pattern, false signals can occur, so risk management and additional analysis are crucial for successful trading.