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Definition

This is a charting term which refers to the lowest point in a bear trend. It is the point where even the most optimistic of the bulls give up their optimism and sell their shares. It is also the point at which investors as a group are at their most negative. Consider the following chart of the bear trend in the 2008 sub-prime crisis:
<img src="/onlinecourse/images/Image_2.PNG" width="530" height="452" />
You can see here the steep downward trend which followed the collapse of Lehman Bros in America and period of sideways movement which ended in a "double bottom" (highlighted in the red circle). At that point the market was awash with negativity and most people were not at all interested in shares. That was also the moment of the greatest opportunity for those who had the courage to go against the trend.

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