Market Bottom Structure

Definition ∞ Market Bottom Structure refers to the identifiable price patterns and volume characteristics that signal the conclusion of a downtrend and the potential start of an upward market movement. This structure often involves a period of price stabilization, decreased selling pressure, and an increase in buying interest, forming a base from which prices can recover. Common formations include double bottoms or accumulation ranges. It indicates a foundational shift.
Context ∞ Identifying a reliable market bottom structure is a primary objective for market participants seeking to enter positions at favorable prices. Analysts debate the specific technical indicators and confirmation signals necessary to validate such a structure, avoiding premature entries. The reliability of these patterns can vary across different asset classes and market conditions, requiring careful contextual analysis.