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Double Bottom

📊 How to: The Double Bottom Pattern📍 What is the Double Bottom Pattern? The double bottom pattern is a trend reversal pattern observed on charts, such as bar and Japanese candlestick charts. Similar to the double top pattern, it consists of two bottom levels near a support line called the neckline. The pattern indicates the end of a downtrend and is confirmed by two failed attempts to break the support level. As a bullish reversal pattern, it signifies a shift in momentum and is commonly used by traders to enter long buying positions. 📍 How to Identify In general, it is fairly simple to identify a double bottom pattern on a trading chart. This pattern can be identified when the price retests the support line and rises up again above the neckline. As a tip, you can usually identify the pattern as a “W” letter formation. 💥 Key Takeaways The double bottom pattern is a bearish momentum reversal resembling the letter W. It requires three main elements: first low, second low, and a clear neckline to identify the formation. The pattern is more effective at the end of a strong downtrend rather than in a ranging market. Drawing a support level and a neckline is necessary to trade this pattern. Confirming the pattern with other technical analysis tools like moving averages, RSI, Fibonacci retracement level, and MACD is important. The recommended approach to trading the double bottom pattern is to wait for the price to break the neckline with a stop-loss order and assess the risk-reward ratio. 👤 @QuantVue 📅 Daily Ideas about market update, psychology & indicators ❤️ If you appreciate our work, please like, comment and follow ❤️
Education
by QuantVue
2
WIPRO- Hourly/Daily/Weekly Timeframe-Channel/Tringle patternNSE:WIPRO WIPRO has beaten so badly in last few months. The stock is near major support levels. The Sellers are trying to push it however somehow it is holding its levels. Weekly : It has formed double bottom (355-360 level) at the bottom of the channel. As per weekly chart 370-380 was earlier resistance from where we saw sharp buying. Now it is retesting these levels and holding it from past 2 days. Besides it’s a .5 Fib level as well. Daily : On 26th June there is a rejection from the bot (Hammer) which indicates 370-373 is strong support levels. Hourly : From past 3 days it’s consolidating between 378-390 in tringle pattern. On Friday 30th June if we see a bullish price action near these levels it’s the best time to go long with small SL. For positional traders SL should be around 370. This is only for educational purpose, please manage your risk accordingly.
NSE:WIPROLong
by Rushikesh_09
A Double Bottoms Pattern!The double bottoms pattern is a common chart pattern used in technical analysis, including scalping strategies. It is a bullish reversal pattern that can signal a potential trend reversal from a downtrend to an uptrend. - In scalping, traders aim to take advantage of short-term price movements and generate quick profits. The double bottoms pattern can be used to identify potential buying opportunities for scalpers. Here's a general description of the pattern: - Downtrend: The price is in a downtrend and reaches a low point, forming the first bottom (low). - Reversal: After the first bottom, the price bounces back up but fails to sustain an upward movement, leading to a minor pullback. - Second bottom: The price then declines again, but this time it does not reach the previous low. Instead, it forms a second bottom, which is typically higher than the first one. - Confirmation: Once the second bottom is formed, traders look for confirmation signals to enter a long (buy) position. This may include a breakout above a resistance level, a bullish candlestick pattern, or an increase in trading volume. - Target: The target for the trade is often set by measuring the distance between the bottoms and adding it to the breakout point. This provides an estimate of the potential upside move. - It's important to note that scalping strategies often rely on quick trades and small price movements. Therefore, it's crucial to incorporate additional technical indicators, such as momentum oscillators or moving averages, to enhance the accuracy of the signals and manage risk effectively. Remember, before implementing any trading strategy, including scalping, it's advisable to thoroughly backtest and practice it in a simulated or demo environment to gain confidence and refine your approach. Additionally, risk management and proper position sizing are essential aspects to consider in scalping or any trading activity.
AMEX:SPYLong
by A1TradingHub
🚀USDCAD double bottom: bulls ready to charge📈Brace yourself for a game-changing setup on the USDCAD forex pair! 🌟 The charts are showing a compelling buy signal in the 4-hour timeframe, with price bouncing off a solid support level at 1.31400. But that's not all! The candlestick pattern has revealed a powerful bullish engulfing formation, signaling a potential trend reversal in the making. Get ready to set your sights on multiple take profit levels: first target at 1.31950, representing the 0.618 Fibonacci retracement. Then, the neckline at 1.32200 beckons as our second milestone, followed by the third take profit around 1.32500, and ultimately, the grand target at 1.32800! Adding fuel to the fire, the MACD indicator is on the verge of forming a bullish crossover, adding further confirmation to this exciting setup. Don't miss out on this potentially explosive trade opportunity! 🚀 Respect money management don't forget to press the like button if you think this insight was helpful🚀
Long
by Thomas_Zito
1
How To Trade Double Bottom Pattern? ✅In the world of forex trading, understanding patterns and trends can make all the difference between profit and loss. One popular pattern that traders often look out for is the double bottom, also known as the "W" pattern. ✅The double bottom pattern occurs when the price of a currency pair reaches a low point, bounces back up, dips again to the same level, and then bounces back up again, creating a "W" shape. Essentially, the market has twice failed to break through the support level, indicating a potential reversal to the upside. ✅This pattern is often seen as a bullish indicator, as it suggests that buyers are stepping in and pushing the price up. It is important to note, however, that the second bounce should not dip below the first one, as this could indicate a continuation of the bearish trend. ✅So, how can traders take advantage of the double bottom pattern? One strategy is to enter a long position once the price breaks out above the resistance level created by the two bounces. This breakout confirms the reversal and can signal a potential uptrend. ✅It is also important to combine the double bottom pattern with other technical indicators, such as the Relative Strength Index (RSI) or Moving Average Convergence Divergence (MACD), to confirm the potential reversal. ✅However, as with any trading pattern, it is important to approach the double bottom with caution and to always have a solid risk management strategy in place. Traders should also be aware of potential false signals and market noise that could obscure the true trend. ✅In summary, the double bottom pattern can be a useful tool for forex traders looking to identify potential reversals and enter profitable trades. By combining it with other technical indicators and practicing proper risk management, traders can improve their chances of success in the ever-changing and unpredictable world of forex trading. I hope this post was helpful to some of our beginner traders😊 Dear followers, let me know, what topic interests you for new educational posts?
BITSTAMP:BTCUSDEducation
by SignalProvider
8
🦘📈 AUDUSD: Double Bottom - Get Ready for a Bullish Rally! 🚀📈Traders, buckle up for an exciting bullish setup in the AUDUSD forex pair on the 4-hour timeframe. We have a compelling opportunity to join the uptrend as price forms a double bottom pattern, paving the way for potential profits. Let's dive into the technical analysis and uncover the enticing prospects this trade offers. The key to this setup lies in the formation of the double bottom pattern. This pattern serves as a powerful bullish reversal signal, indicating a shift in market sentiment. With the current setup, we have an opportune moment to enter a long position, setting a tight stop loss just below the key support level. Adding to the bullish case, the moving averages are now acting as support and are poised for a potential bullish crossover. This convergence of the moving averages enhances the reliability of this setup, providing additional security and boosting confidence in the potential upside movement. Our initial objective is to secure some profits as price reaches the neckline of the double bottom pattern, located at 0.71200. This level serves as a significant resistance zone, and a breakout above it would validate the bullish scenario. Traders can consider taking partial profits at this level to lock in gains and reduce exposure. But the excitement doesn't end there! We can set our sights on a larger target based on a harmonic pattern analysis. The completion of a harmonic Gartley pattern at point D awaits around 1.25200. This target aligns with the projected upward move in the pattern, providing traders with a compelling opportunity to ride the bullish wave. Confirming the upward momentum, the RSI indicator has broken above the 50 level, indicating a continuation of the rally. The sustained RSI reading around this level further supports the bullish bias and provides additional conviction for traders to consider joining the uptrend. So, traders, prepare yourselves for an exhilarating ride as AUDUSD embarks on a potential bullish rally. Seize this opportunity, keep a close eye on the price action, and manage your trades with precision. Remember, taking partial profits along the way can help secure gains and optimize your risk-to-reward ratio. Let's capitalize on this promising setup, leverage the bullish formation, and navigate the forex market with confidence. Get ready to embrace the bullish surge in AUDUSD! 🚀📈 Don't forget to press the like button if you think this insight was helpful 🚀🌟💪
Long
by Thomas_Zito
7
AUDCHF I Will retest neck of double bottomWelcome back! Let me know your thoughts in the comments! ** AUDCHF Analysis - Listen to video! We recommend that you keep this pair on your watchlist and enter when the entry criteria of your strategy is met. Please support this idea with a LIKE and COMMENT if you find it useful and Click "Follow" on our profile if you'd like these trade ideas delivered straight to your email in the future. Thanks for your continued support!
Long
by BKTradingAcademy
23
Spotting Market Reversal by FrogAlgo🗣️ Predicting market reversal is one of the most challenging tasks trader are faced with day by day. These indicators and patterns can handle the initial steps for you. Spotting Market Reversal by FrogAlgo 💥 I. The Spotting Market Reversals is made up of two main phases 1) What Indicators for spotting market reversal a. Oscillator TSI b. SMAs (20,50,200) and EMA200 c. Coloring Candles 2) Identifying the current patterns in market a. H Pattern (Double Bottoms) or Inverted H Pattern (Double Tops) b. SMAs | EMA200 Support or SMAs | EMA200 Support Resistance c. Gap-Up (Oscillator) or Gap-Down (Oscillator) d. Side-Way Candles + SMAs | EMA200 Support or Side-Way Candles + SMAs | EMA200 Resistance II. Spotting Market Reversal consists two parts: 1) Market Reversal (Bottom) for Long : 2) Market Reversal (Top) for Sell : Explanation: 1) Market Reversal (Bottom) for Long : a. Oscillator in GreenZone → SMAs | EMA200 Support pbs.twimg.com b. Oscillator in GreenZone → H Pattern (Double Bottoms) pbs.twimg.com c. Oscillator in GreenZone → Gap-Up (Oscillator) pbs.twimg.com d. Oscillator in GreenZone → Side-Way Candles + SMAs | EMA200 Support pbs.twimg.com 2) Market Reversal (Top) for Sell : a. Oscillator in RedZone → SMAs | EMA200 Resistance pbs.twimg.com b. Oscillator in RedZone → Inverted H Pattern (Double Tops) pbs.twimg.com c. Oscillator in RedZone → Gap-Down (Oscillator) pbs.twimg.com d. Oscillator in RedZone → Side-Way Candles + SMAs | EMA200 Resistance pbs.twimg.com
NASDAQ:AMD
by A1TradingHub
Is BA- Boeing Company ready for bullish continuation ?BA is in the industrial sector. Presently a sector may be underway with the industrial sector (XLI) getting more attention and some upticks. On the daily chart BA is seen in consolidation at the high volatility high volume area about the POC line of the volume profile. In 2022, BA descended from its post-COVID highs into a double bottom of the "W" type. Since then the uptrend continued into the present consolidation. The zero-lag MACD shows the K /D lines crossing the zero horizontal line. BA is further supported by the long term mean of the anchored VWAP. Given the pattern and trends on the highly reliable daily chart. I see this as a good setup for a long swing trade of either stocks or call options with about 40% upside to the supply zone. I see it as a good way to diversify away from technology for better risk management.
NYSE:BALong
by AwesomeAvani
NDX - Rising Trend Channel [MID TERM]🔹NDX shows strong development within a rising trend channel in the long term. 🔹NDX has risen strongly since the positive signal from the DOUBLE BOTTOM formation at the break through resistance at 12042. 🔹NDX has support at 13000 and resistance at 16500. 🔹Overall assessed as technically positive for the long term. Chart Pattern; 🔹DT - Double Top | BEARISH | 🔴 🔹DB - Double Bottom | BULLISH | 🟢 🔹HNS - Head & Shoulder | BEARISH | 🔴 🔹REC - Rectangle | 🔵 🔹iHNS - inverse head & Shoulder | BULLISH | 🟢 Verify it first and believe later. WavePoint ❤️
NASDAQ:NDXLong
by wavepoint99
Chromia (CHR) Forms Double Bottom Pattern!💎 Chromia make a double bottom pattern formation. CHR USDT has been steadfastly maintaining a significant support level setting the stage for potential price movements. A key milestone to watch out for is the breakout of the neckline. 💎if the neckline breaks successfully it could trigger a powerful breakout and price move toward strong resistance. Disclaimer: This is Not Financial Advice ❗️ Trade at Your Own Risk ⚠️
by MyCryptoParadise_Simon
How to Fleece Retail Investors 101: The Great ZigZagThe Great Fleecing of novices and fools continues. First, a massive year-long rally was permitted to run its course all through 2021, price climbed inexorably higher and higher to astronomic regions. Euphoria was universal. Stonks only go up! No time for Puts! gOgOgO!! Bulls made money. Second, came the Wyckoff distribution we have seen all year long in 2022, right to the last trading session; Santa didn't come. Bears made money. Now, come Phase 3. All retail is bearish; no one expects price to rise; therefore it will. All your poots will melt and shorts dwindle, bear shares will be destroyed when price rises and time decay eats them away as a mighty bear flag unfurls. Retail investors will perk up and load more stonks because; A Golden Cross is forming; "The Bull Market is Back! Yay!" VIX will get crushed, and Bears will lose all or most of their money. Then comes the bitter surprise... a Zig-Zag correction of monster proportions with a double bottom. Bulls will lose all or most of their money and bears will be out of cash from their massive losses on the bear flag unfurling. By EOY 2023, no one will have any money left. Then the cycle begins anew!
TVC:SPX
by DaddySawbucks
19