DOUBLE BOTTOMZ UP
Updated
Nice double bottom forming on gold mining stocks. Price target indicated by this bullish reversal pattern is a nice merger with the daily up-trend line and fib level indicated in chart.
Best option for profitable trade is to buy on decisive volume breach of pattern neckline with stop loss as indicated. For less risky entry point, wait for confirmation with small pull back and a bounce off the neckline.
Good Luck. Technical pattern information included below
Double Top or Bottom
The double top is one of the most popular patterns in trading. It's a reliable reversal pattern that can be used to enter a bearish position after a bullish trend. It consists of 2 tops at nearly the same level with a valley in between, which creates the neckline. The second top does not break the level of the first top, so the price retested this level and tried to make a higher high, but failed. Price breaking the neckline and closing below it would complete the pattern.
Conservative traders look for additional confirmation and aggressive traders may enter a bearish position from the second top. The target can be estimated by measuring the height of the pattern and projecting this downwards from the neckline. Common stop levels are just above the neckline, halfway between the neckline and the tops or above the tops. The double bottom is the bullish version of this pattern that can form after a downtrend. A popular variation of this setup is the 2618 trade (as taught by Jason Stapleton) with specific rules for the pattern configuration including where to enter and to exit the trade. - SOURCE: TRADINGVIEW
Best option for profitable trade is to buy on decisive volume breach of pattern neckline with stop loss as indicated. For less risky entry point, wait for confirmation with small pull back and a bounce off the neckline.
Good Luck. Technical pattern information included below
Double Top or Bottom
The double top is one of the most popular patterns in trading. It's a reliable reversal pattern that can be used to enter a bearish position after a bullish trend. It consists of 2 tops at nearly the same level with a valley in between, which creates the neckline. The second top does not break the level of the first top, so the price retested this level and tried to make a higher high, but failed. Price breaking the neckline and closing below it would complete the pattern.
Conservative traders look for additional confirmation and aggressive traders may enter a bearish position from the second top. The target can be estimated by measuring the height of the pattern and projecting this downwards from the neckline. Common stop levels are just above the neckline, halfway between the neckline and the tops or above the tops. The double bottom is the bullish version of this pattern that can form after a downtrend. A popular variation of this setup is the 2618 trade (as taught by Jason Stapleton) with specific rules for the pattern configuration including where to enter and to exit the trade. - SOURCE: TRADINGVIEW
Note
Note
Structure on this trade is building strength. A quick look at previous GDXJ chart shows bullish breakout now likely
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