Double bottom in Credit Agricole
Updated
The algorithm shows an opportunity to buy credit agricole if the double bottom pattern breaks.
The double bottom pattern is a bullish reversal pattern that appears on a chart as two distinct bottoms at roughly the same price level, separated by a peak in between. The pattern is formed when the price of an asset falls to a support level, bounces back up, falls back down to the same support level, and then bounces back up again. This pattern is considered bullish because it suggests that the asset's price may be about to start rising again after a period of decline.
One way to trade the double bottom pattern is to wait for the price to break above the peak that separates the two bottoms. This is known as the "breakout." Once the price breaks above the peak, it is a signal to buy the asset. Some traders may also set a stop-loss order below the second bottom, to limit their potential losses in case the price does not continue to rise.
So, a possibility is to wait the break of 10,2 level and look to sell in the next area where volume increase and we also find supports & resistances (11,50€).
A break of the small black line could also be a great point to buy, but it's not a confirmation of the larger double bottom pattern.
The double bottom pattern is a bullish reversal pattern that appears on a chart as two distinct bottoms at roughly the same price level, separated by a peak in between. The pattern is formed when the price of an asset falls to a support level, bounces back up, falls back down to the same support level, and then bounces back up again. This pattern is considered bullish because it suggests that the asset's price may be about to start rising again after a period of decline.
One way to trade the double bottom pattern is to wait for the price to break above the peak that separates the two bottoms. This is known as the "breakout." Once the price breaks above the peak, it is a signal to buy the asset. Some traders may also set a stop-loss order below the second bottom, to limit their potential losses in case the price does not continue to rise.
So, a possibility is to wait the break of 10,2 level and look to sell in the next area where volume increase and we also find supports & resistances (11,50€).
A break of the small black line could also be a great point to buy, but it's not a confirmation of the larger double bottom pattern.
Trade active
Both entry points (break of black lines) have been reached, so just enjoy the rally now.
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