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Doublebottomtradeidea

SYMPHONY: DOUBLE BOTTOMNSE:SYMPHONY is currently forming a double bottom pattern, which indicates a potential bullish reversal. This pattern typically suggests that the stock has found strong support at the bottom levels and may be preparing for an upward movement. However, traders should exercise caution and consider entering a trade only after a confirmed breakout above the neckline, ensuring the pattern's validity. The target price can be calculated by measuring the height from the double bottom's lowest point to the neckline and then adding this distance above the neckline. This method provides a projected target for the anticipated upward trend.
NSE:SYMPHONYLong
by VanshikaUdeshi
DOUBLE BOTTOM :BANK NIFTYAdam and Adam Double Bottom Formation: This formation typically indicates a reversal pattern, characterized by two sharp V-shaped bottoms. It reflects a strong rejection of lower prices and often precedes a bullish trend reversal. Breakout Confirmation: Yesterday's NSE:BANKNIFTY breakout above the neckline adds confirmation to the bullish bias. The candle closing above the neckline reinforces the validity of the pattern. Target Projection: To estimate a target, measure the distance from the lowest low of the double bottom to the neckline. Then, add this distance to the breakout point. This projected distance can serve as a potential target level. Stop-loss Placement: A stop-loss can be placed below the recent swing low or the lowest point of the double bottom formation. This level acts as a safety net in case the pattern fails to materialize, limiting potential losses. Risk Management: Considering the possibility of a "huge downfall" in case of failure, it's crucial to implement proper risk management strategies. This includes setting a stop-loss at a level that aligns with your risk tolerance and position size.
NSE:BANKNIFTYLong
by VanshikaUdeshi
FORMATION OF DOUBLE BOTTOM: PRAJ IND1. Identifying the Downtrend: A downtrend is characterized by a series of lower highs and lower lows. Upon analyzing the price chart of Praj Industries, it's evident that the stock has been declining over a certain period. This downtrend is marked by a consistent pattern of lower highs and lower lows, indicating selling pressure and overall bearish sentiment in the market. 2. Double Bottom Formation: e observe the formation of a double bottom pattern within this downtrend. A double bottom pattern is a bullish reversal pattern that typically forms after an extended downtrend and signifies a potential trend reversal. In the case of NSE:PRAJIND , we identify two distinct troughs (bottoms) formed at approximately the same price level, separated by a peak (intermediate high). This formation suggests that selling pressure may be waning, and buyers are stepping in at the same support level twice, indicating a potential shift in sentiment from bearish to bullish. 3. Confirmation and Trade Setup: To confirm the validity of the double bottom pattern and initiate a trade, we look for a breakout above the neckline. The neckline is drawn by connecting the highs between the two troughs of the double bottom pattern. Once the candle closes above the neckline, it serves as confirmation of the pattern completion and signals a potential entry point for a long trade. 4. Target Projection: The target for the trade can be estimated by measuring the distance from the lowest low (bottom) of the double bottom pattern to the neckline. This distance is then added to the breakout point (the neckline) to project a potential upside target.
NSE:PRAJINDLong
by VanshikaUdeshi
Double Bottom a bullish reversal patternDouble Bottom Pattern Tutorial - Double Bottom is a bullish reversal pattern usually found at the end of a downtrend. Double Bottom pattern can be easily identified when price reaches a equal low two consecutive times unable to push price to a new lower low to continue the downtrend then the price bounces sharply from the equal low area and then breaks the neckline. The entry point of this trade pattern will be confirmed by a closing of price above the neckline. We can take help of RSI to see the momentum and the strength of the price movement. Stay Tuned, 👍;
Education
by tapasdhanadana
1
EURUSD double bottom trade ideaIt’s Friday! TGIF Here’s another Forex trading Snack. After the ECB enacting unlimited QE yesterday during it meeting EUR was shaken with volatility and created what can be viewed as a double bottom pattern. After breaking the neck line and holding it, the path of least resistance I believe is toward completion of the pattern. That should take us towards 1.1200-1.1250 which is also the area of a downward top trend line of a weekly wedge pattern. Longer term should that weekly pattern break it points towards a massive short squeeze. But let’s not get a head of ourselves. First things first. Should you trade this idea the risk is all yours. In trading you either make dust or you eat dust! All the best.
Long
by PipsTradingClub