🔍 How to Spot Double-Bottom Setups with RSI < 20 and Oversold Bollinger
#TradeStrategy #IfYouAreNewToBinance

You're looking for a pattern that combines:

Double-bottom price formation (a “W” shape) where the second low is near or below the first.

RSI extremely oversold, ideally below 20.

Price touching or dipping below the lower Bollinger Band, signaling an oversold condition.

This triple-confluence is classic mean-reversion territory.

Bollinger Bands identify volatility extremes—the lower band often aligns with price support

RSI < 20–30 flags extreme weakness, especially in crypto markets tradingcentral.com.

Combining both reduces false signals compared to using either alone

A double bottom with a touch outside the lower band followed by a weaker test is a textbook TT double-bottom setup

🧩 Example on Binance: Bitcoin Cash (BCH)

A recent Binance post flagged BCH as meeting these conditions:

RSI 14 around 23.5, deeply oversold.

Price touching the lower Bollinger Band (~$325) during contraction.

Shows short-term bottom divergence, supportive of a bounce

That matches closely to your criteria.

✅ What To Do Next

Scan Binance (Spot or Futures) for coins whose RSI 14 is below 20 (or 30 at the very least) and price at/just below the lower Bollinger Band.

Look for double-bottom price action where the second low is similar or a bit lower, ideally staying within the lower band or slightly outside.

Confirm volume decline on the retest to ensure the selling pressure has eased binance.com.

Wait for confirmation: price re-entering the band or a bullish candle near second bottom.

📌 Summary

BCH recently ticked all your boxes: RSI < 30, lower Bollinger touch, bottom divergence—potential double-bottom setup.

Use a scanner/alert for other Binance-listed tokens that match RSI < 20–30 + lower Bollinger bounce.

Look for that key double-bottom pattern with volume and price confirmation before entry.