Get started

Double Bottom

BANK NIFTY:DOBLE BOTTOMOver the past few days, NSE:BANKNIFTY has been exhibiting a downtrend, indicating a bearish sentiment in the market. However, a notable development is the formation of a double bottom structure, which could potentially signal a reversal in the current trend. The double bottom pattern is a bullish reversal pattern that typically occurs after a prolonged downtrend. It consists of two troughs or "bottoms" at approximately the same price level, separated by a peak or "neckline." In this case, traders are advised to observe the pattern for a potential breakout. To initiate a trade based on this pattern, one should wait for a breakout and closing of a candle above the neckline. This breakout acts as a confirmation of the potential trend reversal. It is crucial to emphasize the importance of waiting for a candle close above the neckline to reduce the likelihood of a false signal. The target for this trade is calculated by measuring the distance between the low of one bottom and the neckline. This distance is then projected upwards from the breakout point to estimate the potential upward move. Traders should keep in mind that the target is a theoretical projection and may be influenced by various market factors. Additionally, it is common for the market to retest the breakout level after the initial breakout. Traders should be prepared for a retest and not be alarmed if the price revisits the neckline. The retest provides an opportunity to confirm the strength of the breakout and potentially add to the position. Risk management is paramount in any trading strategy. Traders should determine their risk appetite and set a proper stop loss level. The stop loss should be placed below the second bottom or at a level that aligns with the trader's risk tolerance. This ensures that losses are controlled in case the trade does not unfold as anticipated. In summary, the analysis suggests a potential opportunity for a bullish trade in Bank Nifty based on the double bottom pattern. However, traders should exercise caution, wait for a confirmed breakout, set realistic targets, and implement effective risk management to enhance the probability of a successful trade.
NSE:BANKNIFTYLong
by VanshikaUdeshi
2
Breakout & Re-test of ~5.5 year Falling WedgeBitcoin Cash was in a falling wedge for nearly five and a half years before it broke out of it back in June of 2023. Presently, it is re-testing the top of a dashed-line wedge drawn from wick to wick and has failed to reach the top of the solid wedge drawn from the line chart. Holding above the wedge could lead to an approx 5.25x move against Bitcoin from its current position at 0.0057 to TP 1 at 0.030 and an 11.75x move should it reach TP 2 at 0.067. It's possible we could see a double-bottom with a slightly higher low around 0.0041 or 0.0040 if it re-tests the solid wedge's top over the next weeks or into March or June, before moving up towards targets. Should a wedge re-test and double-bottom occur first, the possibility for already major gains vs. Bitcoin increases to 7.3-7.5x at TP 1 or 16.34-16.75x at TP 2.
Long
by dudebruhwhoa
2
PRICE ACTION VS SMART MONEY CONCEPTS : the double bottomIn the world of technical analysis, the double bottom pattern holds a special place for traders. However, the way this pattern is interpreted can vary, especially when comparing the traditional price action approach with the more intricate Smart Money concepts. Traditionally, a double bottom is identified by the formation of two distinct lows, approximately at the same price level, separated by a reaction high. Traders keen on price action look for a breakout above this reaction high as a signal for potential bullish momentum. As a price action trader i was interested by the Smart money concepts approach so i decided to read about it a little bit and i found it pretty detailed after reading here are the differences that i noticed on the double bottom pattern.
EIGHTCAP:XAUUSD
by xAB777
Alaska Air Group: Double BottomOverview Alaska Airlines is a subsidiary for Alaska Air Group. If you aren't familiar with the verbiage, this means that Alaska Air Group ( NYSE:ALK ) is the umbrella company that owns Alaska Airlines. In light of the Boeing ( NYSE:BA ) mishap that occurred yesterday in Oregon and in addition to the current trend on ALK's 1D chart, I believe ALK will correct to $30-31. Technical Analysis According to the 1D chart, ALK has been on the trajectory of a double bottom since July 2023. The last dip in the double bottom formation rests around $30-31 which I believe will approach sooner than expected due to ALK's grounding of an entire fleet of Boeing 737 MAX-9s. As long as nothing else negative comes to light, I believe ALK will begin its rise to $57 sometime after arriving around the second dip of the double bottom. Market Psychology Speculations I believe Boeing will catch most of the negative press but that doesn't mean Alaska Air Group is off the hook. Because ALK's subsidiary has also been in the headlines, I think the double bottom is going to accelerate. Alaska Airlines has received bad press twice in the last 12 months for narrowly avoiding aircraft-related catastrophes; the first concerning an off-duty pilot that attempted to cut off the engines mid-flight. All that said, after the initial dust has settled, I believe the markets will forgive ALK and a potential recovery will begin. Kudos should be given for having the proper procedures in place that helped return both aircrafts back to the ground safely without incident. The next major factor that needs to be considered is how the grounding of an entire fleet will affect their balance sheets for the upcoming Q4 Earnings Call. Fundamental Analysis I will perform a fundamental analysis within the next few days. Due to market reactivity I don't believe a healthy balance sheet will cushion the share price until after the Q4 Earnings Release.
NYSE:ALK
by Shepherd_Investor
First Wave BioPharma $40 PT Upside potentialBefore the close of the year the Bio Pharma Sector started running wild. It doesn't surprise me why i'm drawn to this company with all the catalysts coming out. Recently with a PT 40 From Roth MKM. The more you read about the news that comes from this company between CEO investor relations, Merger Deal with Immunogen and entering their phase 3 trial there is so much Upside potential. Although short term there's a lot of turbulence in the 5.00-5.38 range if it can break and hold strong this stock can get there pretty quick. Currently holding a Long position. Trade Responsible, #TradeTheWave 🏄🏽‍♂️🌊
FLong
by FinesseTheWave
Solara - The Sun is Rising Behind the PyramidSolara Active Pharma: After the CEO of Solara resigned 1.5 years ago, the Company shares faced a major crash - retracing near 100% on Fib scale. A large Pyramid like structure was formed eventually Over the past few months - the price has started to strengthen the base taking support near the 290-300 zone which is one the Strongest support for the script A Bullish Reversal sign is seen when a Right Angled Triangle pattern was formed and successfully breaking out of the Pattern along with the next immediate resistance at 410. I can also be seen as a Double Bottom pattern - long long way to go Its changing direction from being a Sunset company to a Sunrise company. With the Breakout of Pharma sector, many Pharma companies are having their dream run and SOLARA is riding the journey along with its peers. The Sun is Rising behind the Tall Pyramid. Wait for Large Targets ahead - 550, 830, 1200 Disclaimer: Stocks-n-Trends is NOT a SEBI registered company. We do not provide Buy / Sell recommendations - rather we provide detailed analysis of how to review a chart, explain multi--timeframe views purely for Educational Purposes. We strongly suggest our followers to "Learn to Ride the Tide" and consult your Financial Advisors before taking any positions. If you like our detailed analysis, please do rate us with your Likes, Boost and share your comments -Team Stocks-n-Trends
NSE:SOLARALong
by Stocks-n-Trends
Double Bottom - UCHFHere I have the USD/CHF on the 1Hr Chart. Price action has outlined what looks to be a possible strong reversal pattern, the Double Bottom! Price has given us two Lows with the most current being a Higher Low. Now I expect with price reaching back up to Confirmation of Pattern @ .8451, we should be given a Break of Confirmation for price to begin creating Higher Highs! RSI was heavily Oversold on the first Low created and looks to start working up above 50 after the last Low! *Chart Patterns are known to fail 1/3 of the time so BEWARE OF FALSE BREAKS! -Pattern Prediction- *If Price Breaks and Closes below .83562, Pattern INVALIDATED! *If Price Breaks and Closes above .8451, Pattern CONFIRMED!
Long
by Novi_Fibonacci
FTM's Situation: What Shall we Expect ?➡️Double bottom is in forming on weekly timeframe. Looking for the retest of the neckline, If the neck breaks, it will witness good growth. - High potential areas are clear in the chart. - You can look for reasons to enter according to your own personal strategy after approval. -AB=CD 🤑Stay awesome my friends. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ ✅Thank you, and for more ideas, hit ❤️Like❤️ and 🌟Follow🌟! ⚠️Things can change... The markets are always changing and even with all these signals, the market changes tend to be strong and fast!!
FLong
by CobraVanguard
1
Learn to identify some useful Chart patterns, Merry Christmas🎄 Unlocking the Secrets of Chart Patterns: Navigating Market Trends 📈 Season's Greetings to all our readers! As we celebrate the spirit of the holidays, let's delve into the fascinating world of financial markets. In our journey to understand and navigate the complexities of trading and investing, we've touched upon essential chart patterns that can serve as invaluable guides for market enthusiasts. In the midst of the festive cheer, let's revisit some of these powerful indicators: the Double Bottom, Flag and Pole, Bullish Pennant, Rising Wedge, Falling Wedge, Triple Top, and Inverted Head and Shoulders. Understanding these patterns can be akin to unwrapping gifts of insight into potential market movements. So, grab a cup of cocoa, settle into your favorite chair, and join us as we explore the significance of these chart patterns and share practical tips on incorporating stop-loss strategies to enhance your trading toolkit. Wishing you a Merry Christmas filled with joy, warmth, and prosperous insights in the financial markets! 🎅🎁🚀 Double Bottom: Description: Imagine a smiley face turned upside down. A double bottom is a chart pattern that looks like two rounded troughs (bottoms) next to each other. Interpretation: Indicates a possible reversal of a downtrend. The price has tried to go down twice but failed, suggesting a potential upward movement. Stop-Loss Tip: One can place a stop-loss slightly below the lowest point of the double bottom. If the price falls below this level, it may invalidate the pattern. Flag and Pole: Description: Think of a flag on a flagpole. The "pole" is a strong, quick price movement, and the "flag" is a rectangular-shaped consolidation pattern. Interpretation: The flag and pole pattern often signals a continuation of the previous trend. The flag represents a brief pause before the price resumes its original direction. Stop-Loss Tip: One should set a stop-loss just below the lower end of the flag. If the price drops below this level, it might suggest a reversal of the trend. Bullish Pennant: Description: Similar to the flag and pole but with a small symmetrical triangle (pennant) instead of a rectangle. Interpretation: Indicates a temporary consolidation after a strong upward movement. It suggests that the bullish trend might continue after the brief pause. Stop-Loss Tip: Place a stop-loss under the lower trendline of the pennant. A break below this line could signal a potential trend reversal. Rising Wedge: Description: Picture a triangle with its top side steeper than the bottom side. The price makes higher highs and higher lows but in a narrowing range, with indicator making Lower Highs (Bearish Divergences). Interpretation: This pattern can indicate a potential reversal to the downside. It suggests that the buying interest is weakening, and the price may soon decline. Stop-Loss Tip: Place a stop-loss just above the last price swing high of the wedge. If the price drops below this line, it may suggest a potential reversal. Falling Wedge: Description: Similar to the rising wedge but inverted. The top side is less steep than the bottom side. Interpretation: Represents a potential reversal to the upside. It suggests that selling pressure is weakening, and the price may be ready to move higher. Stop-Loss Tip: Place a stop-loss just below the last price swing low of the wedge. If the price drops below this line, it may suggest a potential reversal. Triple Top: Description: Visualize a horizontal line touching the tops of three consecutive peaks. Interpretation : Indicates a possible reversal of an uptrend. The price has failed to break above a certain level three times, suggesting a potential downturn. Stop-Loss Tip: One should set a stop-loss slightly above the highest point of the triple top. If the price rises above this level, it may negate the pattern. Inverted Head and Shoulders: Description: Picture three troughs, where the middle one (head) is lower than the two on either side (shoulders). Interpretation: This pattern suggests a potential reversal from a downtrend to an uptrend. It signifies a shift in momentum from bearish to bullish. Stop-Loss Tip: One should place a stop-loss just below the neckline (the line connecting the highs of the pattern). If the price falls below this line, it might indicate a failed reversal. I am not Sebi registered analyst. My studies are for educational purpose only. Please Consult your financial advisor before trading or investing. I am not responsible for any kinds of your profits and your losses. Most investors treat trading as a hobby because they have a full-time job doing something else. However, If you treat trading like a business, it will pay you like a business. If you treat like a hobby, hobbies don't pay, they cost you...! Hope this post is helpful to community Thanks RK💕 Disclaimer and Risk Warning. The analysis and discussion provided on in.tradingview.com is intended for educational purposes only and should not be relied upon for trading decisions. RK_Charts is not an investment adviser and the information provided here should not be taken as professional investment advice. Before buying or selling any investments, securities, or precious metals, it is recommended that you conduct your own due diligence. RK_Charts does not share in your profits and will not take responsibility for any losses you may incur. So Please Consult your financial advisor before trading or investing.
NSE:NIFTYEducation
by RK_Chaarts
49
DOUBLE TOP AND DOUBLE BOTTOM / TRADE FROMATION 📈📉Hello Traders! I want to show you how to recognize on the chart the double top and double bottom formation. Recognizing double tops and double bottoms is a key aspect of technical analysis in trading. These patterns often signal potential trend reversals and can help traders make informed decisions. Here's a brief description of how to recognize each: Double Top: Formation: A double top pattern typically forms after an uptrend and resembles the letter "M." It consists of two peaks that reach a similar price level, separated by a trough (valley) in between. Symmetry: The two peaks should be roughly symmetrical, indicating that the buying pressure that led to the initial uptrend is waning. Double Bottom: Formation: A double bottom pattern usually forms after a downtrend and resembles the letter "W." It consists of two troughs at a similar price level, separated by a peak in between. Symmetry: The two troughs should be approximately at the same level, suggesting a potential exhaustion of selling pressure. Additional Considerations for Both Patterns: Timeframe: Analyzing the timeframe is crucial. Patterns on longer timeframes generally carry more significance than those on shorter timeframes. Confirmation: It's advisable to wait for confirmation before making trading decisions. This involves waiting for the price to break the neckline and observing sustained movement in the confirmed direction. Target and Stop-Loss: Calculate potential price targets and set stop-loss levels based on the height of the pattern. This helps traders manage risk and optimize reward potential.
TVC:GOLD
by GoodTradeST
EUR/GBP ↖️ Long Trade Setup ↖️Hello Everyone 🙋🏽‍♂️ Triangle breakout + double Bottom 💵 Entry Point : 0.85887 🟢 TP1 0.86122 ⚠️( Close 50% of the trade and Set the SL on EP )⚠️ 🟢 TP2 0.86326 🔴 SL 0.85672 We are not responsible of any losses for anyone, our trades are profitable more for long terms and we take losses as everyone, manage your lot size as well and your SL and TP and my opinion is 0.01 lot for each 500 $. Don't forget to hit the like bottom and write a comment to support us. Follow us for more 🙋🏻‍♂️ Best Regard / EMA Trading . Disclaimer: ---------------- It's not a financial advise, As everyone we take losses sometime but for long term trading we are profitable traders, so manage your account well with SL and TP and your lot size to keep your account safe and stay in the market
Long
by EMA_Trading
3