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Double Bottom

Double Bottom CONFIRMED! - EGHere I have EUR/GBP on the 1 Hr Chart! Price had made two very equal lows on the chart but closer look on the RSI indicator and you can see Price really is losing is Bearish influence and is looking to possibly go Bullish!! This strong reversal pattern called a Double Bottom makes me believe we could see Price push Higher after it broke out CONFIRMATION of Pattern @ .85424 and has come back to test and is already showing signs of finding possible Support @ Confirmation! INVALIDATION of Pattern @ .85289 First Target Range is .85535 - .85593 Second Target Range is .85687 - .85745
Long
by Novi_Fibonacci
LIT's Situation: What Shall we Expect ?Hi. COINEX:LITUSDT ✅Today, I want to analyze LIT for you in a 3D time frame so that we can have a MID-term view of LIT regarding the technical analysis. (Please ✌️respectfully✌️share if you have a different opinion from me or other analysts). ➡️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 ✅ Due to the Ascending structure of the chart... - High potential areas are clear in the chart. - DOUBLE BOTTOM - 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!!
Long
by CobraVanguard
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
Monthly Adam & Eve Breakout Being Re-testedMonthly close is in a little over 5 days. CRYPTO:HBARUSD formed an Adam and Eve double-bottom on the monthly right at center and top of Monthly Support before breaking out to confirm that pattern and is now re-testing it for final confirmation or denial. Hold the monthly neckline at 7.3 cents and we can expect a move up towards Monthly Resistance as we get into February and March. Lose it and we likely will see another test of monthly support instead, which is around a falling wedge top, or this re-test area and/or the 200 day EMA and MA that I have marked and displayed on my weekly chart below. Note that HBAR also saw a 50/200 day EMA and MA Golden Cross during the last few months of 2023, and is presently sitting back below the 50 EMA and MA. However, it has held above the 200 EMA and MA. So, we also need to see it recover the 50 EMA and MA if and after we see a close above the monthly neckline as well or these areas could be tested again. Weekly chart showing Golden Crosses and Falling Wedge break / re-test(s) - also shown in related published ideas below, but updated chart pic here: TL / DR - hold the Adam/Eve double-bottom's monthly neck @ 7.3 cents to continue up, lose it to re-test 200 day EMA/MA and/or the falling wedge re-test area marked on the weekly chart above.
BINANCE:HBARUSDLong
by dudebruhwhoa
3
Arvind Ltd Swing, Short Term and Long Term Trade Idea6M chart shows a Double bottom breakout, we need to wait till December closing, aggressive investors may consider trade now. This shows a potential 100% return from here. Monthly and weekly chart shows an all time high breakout, after 5 years of consolidation and hitting the same supply region. This chart shows opportunity for swing and short term. 75 minutes has broken out of small consolidation zone, potentially leading to the next target zone of 185. For swing trade one may consider this. Trade at your own risk, Happy trading!
NSE:ARVINDLong
by Rugminik
👑 GOLD KEY🗝️ LEVEL TO WATCH👀 AND WHY🤔Greetings, Traders! Here's a quick update on the Gold market: 📉 Pattern: Double Bottom 📊 Current Status: The price confidently trades above the Neck Line Breakout at 2023.779. 🎯 Near-Term Targets: Target 1: Aiming for the 100% retracement level at 2032.606 Target 2: Aspiring towards the 162% retracement level at 2038.067 Traders, stay vigilant as the market unfolds. Adjust your strategy based on real-time conditions, and, as always, implement robust risk management practices. If you have any queries or need further insights, feel free to ask. Wishing you successful trades! 🚀🔍 🤔 Why these levels? These levels aren't just targets; they also signify potential reversal zones. Let me explain: 100% Retracement (Target 1 - 2032.606): This level marks a complete retracement of the initial downswing that formed the Double Bottom pattern. Traders often expect a reaction or a pause in the upward movement around this level. 162% Retracement (Target 2 - 2038.067): The 162% extension is a common Fibonacci level used in technical analysis. Some traders view this as an extended target where the price might show additional strength or face resistance.
OANDA:XAUUSD
by TradeChartPatternsLikeThePros
Why You Should Avoid Trading Standard Patterns: Deeper AnalysisTrading based on technical analysis is a popular way for traders to identify market opportunities. One of the most common methods of technical analysis is the use of chart patterns. These patterns are recognizable formations created by price movements on a chart. Traders use these patterns to identify potential areas of support and resistance, as well as trend reversals. However, there are several reasons why you should avoid trading standard patterns: 1. Widespread Awareness and Anticipation: Standard patterns are well-known and widely anticipated by market participants. This means that they are already priced in, making trading them a low-probability strategy. 2. Potential for False Signals: The formation of a pattern on a chart does not guarantee the expected outcome. In fact, standard patterns can often lead to false breakouts and failed trades. 3. Difficulty in Trading Effectively: Trading standard patterns effectively requires a high level of skill and experience. Without a deep understanding of market structure and price behavior, traders can easily fall victim to false signals and whipsaws. Advantages of Trading Liquidity Patterns: Liquidity patterns offer a more effective and reliable alternative to standard patterns. These patterns are based on the concept of market liquidity, which refers to the ease with which an asset can be bought or sold without impacting its price. By identifying areas of high and low liquidity, traders can gain an edge in the market. In-depth Analysis of Popular Patterns: 1. Double Bottom: The classic double bottom pattern is a bullish reversal pattern that forms when the price of an asset makes two consecutive lows at the same level, followed by a rally. However, the standard double bottom pattern has a significant drawback: it leaves liquidity below the lows, which can lead to false breakouts and failed trades. A more effective way to trade this pattern is to look for a lower low. This occurs when the price makes a new low below the previous two lows. This indicates that the market is absorbing all the sell liquidity and is ready to move higher. 2. Triangle: A triangle is a consolidation pattern that forms when the price of an asset ranges between two converging trendlines. Traders often look for breakout trades in triangles, but this can be risky. False breakouts are a common occurrence in triangle patterns. This is because market makers often manipulate the price to induce traders to break out of the pattern, only to reverse the price and trap them in losing trades. A more effective way to trade triangles is to look for liquidity grabs. This occurs when the price moves outside of the triangle, only to quickly return back inside. This indicates that market makers are taking liquidity from the market and are preparing to move the price in the opposite direction. Practical Tips for Trading Liquidity Patterns: Always trade with the trend. Liquidity patterns are most effective when they are traded in the direction of the overall trend. Use stop-loss orders to protect your downside. This will help to limit your losses if the trade does not go your way. Be patient and wait for the right setup. Don't force trades and only take those that meet your criteria. Additional Considerations: Market context: It is important to consider the overall market context when trading liquidity patterns. For example, patterns are more likely to be successful in trending markets than in range-bound markets. Risk management : Always use sound risk management principles when trading, regardless of the pattern you are using. This includes using stop-loss orders and position sizing appropriately. False signals: It is important to be aware of the potential for false signals when trading liquidity patterns. Not all patterns will lead to successful trades, and it is important to be prepared for losses.
Education
by Yaroslav_Krasko
3