Double BottomUgly top and appears to have found a bottom, twice. so far.
PTON appears to haveas well as forming an ugly top. It has pulled back beyond the 0.5 fib level and looks like a double bottom. Most Parabolic arcs pull back to the .5 to .618 fib level. Some fall more and some fall less. A security can be volatile after a parabolic arc so always be safe. Every security is different, but it would be unusual for a security to fly back to the top after forming an arc. But life is a gamble I suppose.
It does look like support is forming at the 2nd bottom of 94.00 The first bottom is at 92.03. Double bottoms need to be close in price but not exactly the same price, and rarely are they the same.
Double bottoms are very common and describe a change in trend and a momentum reversal from prior leading price action. It describes the drop of a security, a rebound, another drop to the same or similar level as the original drop. If the bottom holds, it becomes obvious that many are making a stand at that level. This pattern can instill more confidence in the bulls when they see the second bottom serve as support once again. The buyers become aware that the pattern exists and that confidence can help the bulls win the neverending battle against the bears.
Not a recommendation.
Stop losses can limit risk. On occasion, Mr market goes stop hunting it seems and takes the stock away from you only to see it fly up after you were stopped out by a penny )o: I guess we should always have an exit plan, a target we would like to reach as well as a limit to how much we can risk losing if a trade goes bad, and it happens to everyone. Some keep this level in their head verse setting an actual stop loss. I am by no means suggesting to place stops in your head because your head may not be in front of the screen if price tanks (o:. Buying close to support can help I think, as well as buying a security you have faith in.
