Doublebottomreversal
Bullish Double Bottom Pattern Tutorial: 4/8 Bullish PatternsGive me the description for a bullish double-bottom
A bullish double bottom is a powerful reversal chart pattern that signals the potential end of a downtrend and the beginning of an upward trend. Here’s how it forms:
Two Troughs: The pattern starts with a significant price decline, forming a low (the first bottom). The price then rebounds to create a peak (the middle of the "W" shape) but soon declines again to form a second bottom roughly at the same price level as the first bottom. This double bottom resembles the letter "W."
Neckline: The horizontal line that connects the peak of the middle rebound is called the neckline. This is a key resistance level that the price needs to break through to confirm the pattern.
Breakout: A breakout above the neckline, typically accompanied by increased volume, confirms the double bottom pattern and signals a potential trend reversal from bearish to bullish.
Price Target: The estimated price target for the upward move is usually determined by measuring the distance from the bottoms to the neckline and projecting this distance upwards from the point of breakout.
Traders view the double bottom as a strong indication that the previous downtrend has exhausted and the bulls are gaining control, leading to a potential significant upward movement.
W (Double Bottom) everywhere in Ward Wizard MobilityWard Wizard Mobility - as the name implies there are too many "W"s in it. But not just on the name - even on the Chart Pattern, this unique masterpiece is forming "W"s - Double Bottom Structures repeatedly
Look at the Beautiful Weekly Chart.... The Price has formed a Perfect textbook Inverted Head and Shoulders pattern where the Left Shoulder and Right Shoulder are at even levels
But what's more fascinating in this is that - there was W structures embedded in Left Shoulder, the Head and also on Right Shoulder
And the W of Left Shoulder is in the same plane as the W formation on Right Shoulder
Also, on the Monthly / Quarterly level, the price has formed a Multi-Year Parallel Channel and it has not reached the Bottom of the Parallel channel and taken support
All of these indicates Bullishness. Shortly, this stock will start to blast upwards for a target of 100+++
ANTICIPATING TRADES BY APPLYING TRADING STRETEGYAnalysis of AUDUSD Forex pair carried out on 12 Sep 2024 by applying following trade strategy:-
1. Bullish trend started and first HH formed
2. Bullish Divergence on end of Bearish trend
3. No continuation pattern
4. Bullish Double Bottom reversal pattern formed
5. Bullish Harmonics pattern AB=CD pattern formed and chart near point D, PRZ
6. Anticipated that chart will go bullish by making HHs & HLs
7. Initiated two trades on MT4 by marking buy stop on first HH and stop loss at HL
ANTICIPATING TRADES BY APPLYING TRADING STRETEGYAnalysis of GBPUSD Forex pair carried out on 12 Sep 2024 by applying following trade strategy:-
1. Bearish trend
2. Bullish Divergence
3. No continuation pattern
4. Double Bottom reversal pattern formed
5. Bullish Harmonics pattern AB=CD pattern formed and chart near point D, PRZ
6. Anticipated that chart will go bullish by making HHs & HLs
7. Initiated two trades on MT4 by marking buy stop on break out of LH and stop loss at LL as no HL is still formed
SOL - Adam & Eve Double Bottom Confirming Overall performance rank (1 is best): 17 out of 39
Break even failure rate: 12%
Average rise: 43%
Throwback rate: 67%
Percentage meeting price target: 69%
The Adam & Eve double bottom pattern is a bullish reversal pattern that has been identified on the SOL Intraday price charts. Initially, SOL experienced a sharp decline from $180 to $155, forming the 'Adam' part of the pattern. This was followed by a more gradual, rounded decline over the next 10 days, forming the 'Eve' part of the pattern. This pattern suggests a potential reversal from the previous downtrend.
Potential Market Implications
The resistance level at $155 is pivotal for SOL's short-term price movement. A breakout above this level could confirm the bullish reversal indicated by the Adam & Eve pattern, potentially leading to a price target of $186. Statistical analysis suggests a 69% probability of reaching this target upon successful breakout.
Strategic Considerations
Investors and traders should consider the breakout above the $155 resistance level as a key signal for potential entry. It is advisable to wait for confirmation of the breakout before making any trading decisions. As always, it is important to consider other market factors and conduct a comprehensive analysis before entering any positions.
Adam & Eve Trading Tips
1. Measure Rule Calculation:
- Identify the highest peak (A) and the lowest valley (B) within the Adam & Eve double bottom pattern.
- Calculate the height difference between point A and B.
- Multiply this height by the 'percentage meeting price target.'
- Add the result to the breakout price at point A to determine the price target (C).
2. Price Reversal Requirement:
- Ensure there's a significant decline leading to the double bottom; minor declines typically result in minor rises.
3. Big W Pattern:
- Favor double bottom patterns with a steep, tall left side (Adam) and minimal price consolidations during the decline.
- Anticipate the price to rebound close to the level where the downtrend initiated.
4. Confirmation Necessity:
- Wait for the price to close above the peak between the two bottoms for confirmation.
- Without confirmation, there's a 48% chance the price will continue to decline.
5. Handle Formation:
- After confirmation, watch for price fluctuations forming a 'handle.'
- A breakout from this handle typically signals a strong upward trend.
6. Flat Base Indicator:
- A significant rise is likely if the double bottom follows a long, flat base.
- Use weekly charts to identify the flat base, resembling a pothole on a road.
7. Trend Impact:
- Double bottoms following a short-term decline tend to perform best post-breakout.
8. Proximity to Yearly High:
- Patterns showing breakouts within a third of the yearly high exhibit the best performance.
9. Volume Trend:
- A declining volume trend leading up to the breakout suggests favorable post-breakout performance.
10. Throwbacks Warning:
- Be cautious of throwbacks after the breakout, as they can negatively impact post-breakout performance.
Conclusion
The Adam & Eve double bottom pattern observed on the SOL chart indicates a potential bullish reversal. The upcoming resistance level at $155 is critical, and a breakout above this level could signal a significant upward movement for SOL. Investors and traders should monitor these developments closely and plan their strategies accordingly.
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$PFE (Pfizer Inc) - Double Bottom and Missing RetestIt seems like the price may have hit its bottom, as we're seeing two Key Reversals on the Monthly timeframe.
This scenario could signal a Double Bottom, setting the stage for a high-probability trade setup with waiting for the price to break through the recent Lower High (LH) to confirm a change in trend.
Shifting our focus to the Daily timeframe, there are few potential Sniper Entries opportunities offering the promise of substantial rewards 💸
NZDCADOANDA:NZDCAD
Weekly and Daily timeframes are bullish. Price on the daily made a pullback/retest to the Daily Area of Interest/ key support area @ around 0.82446. Entry is based on the bullish engulfing candlestick of the double bottom reversal pattern formed on the 4h @ 0.82446 daily key support
Ramp Walk REMO stealing the show - Arvind FashionsArvind Fashions is doing Bold Ramp Walk :)
On Weekly - we see Double Bottom Pattern, Followed by Flag Pole - All Breakouts powerful and successful and heading to defined targets steadily
Target 1 - 517 (Reached)
Target 2 - 531
Target 3 - 640
Target 4 - 700
Target 5 - 780
As part of the Budget there is incentives for Textile industry and we expect strong upside on many Textile Stocks and Arvind Fashions on Technical Chart is having a Powerful structure to grow much higher
Keep Holding your Winners
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
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Ethereum - Bullrun StartedHello Traders, welcome to today's analysis of Ethereum.
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Explanation of my video analysis:
In March of 2017 Ethereum created its first valid breakout followed by a +7.000% rally and a -90% correction thereafter. A couple of months ago Ethereum perfectly retested the previous 2018 high and I am just targeting new all time highs from here. If we get a retracement back to the structure level which I mentioned in the video, I will probably even add to my long position.
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I will only take a trade if all the rules of my strategy are satisfied.
Let me know in the comment section below if you have any questions.
Keep your long term vision.
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
The Multi-Bullish Voltas20-Dec-2023 - Voltas - Multi-Bullish Patterns
Weekly - I can see atleast 3 Bullish Patterns
1. Rounding Bottom BO done above 928, Target 1117
2. Double Bottom around 740 levels - Target 1050
3. Bullish Ascending Triangle - BO done
Predictions become accurate when multiple patterns work In-Sync.
$JD Potential Reversal: 2-Day DB, Descending Broadening WedgeOverview:
JD
(JD.com Inc.) appears to be forming a compelling technical pattern that suggests a potential reversal. The stock has developed a 2-day double bottom pattern, coinciding with a falling wedge setup, all occurring within the confines of a major descending broadening formation. Traders and investors should closely monitor these key technical levels for potential bullish momentum.
Key Technical Observations:
Double Bottom Pattern:
JD
has established a clear double bottom pattern over the past two days, a classic reversal formation characterized by two distinct lows at approximately the same price level.
The first low was set , followed by a second low , forming a W-shaped pattern.
Falling Wedge Formation:
A falling wedge is currently in play, with converging trendlines forming lower highs and lower lows.
Falling wedges are often indicative of slowing bearish momentum, and a breakout to the upside could signal a reversal.
Descending Broadening Formation:
The overall context involves a major descending broadening formation, marked by expanding price volatility within a downward trend.
This formation could imply a period of uncertainty and potential for a reversal as the pattern reaches its apex.
Potential Trading Strategies:
Entry Points:
Conservative traders may consider entering long positions upon a confirmed breakout above the upper trendline of the falling wedge.
Aggressive traders might explore entry opportunities near the lower trendline, anticipating a bounce within the descending broadening formation.
Stop-Loss and Take-Profit Levels:
Establish a stop-loss level below the recent double bottom, ensuring protection against a potential breakdown.
Identify potential resistance levels within the descending broadening formation as initial take-profit targets.
Confirmation Signals:
Confirm the bullish reversal with increased volume on the breakout from the falling wedge.
Use additional technical indicators, such as RSI and MACD, to validate the strength of the potential reversal.
Risk Considerations:
Trading involves inherent risks, and it's essential to manage risk effectively. Be cautious of false breakouts and monitor market developments closely.
Disclaimer:
This analysis is for informational purposes only and should not be considered as financial advice. Always conduct thorough research and consult with a qualified financial professional before making trading decisions.
Mara Finding A Bottom. Demand Zone. Mara is finding it's bottom and a pivot point that decide its short term fate. Still trading in the wedge it's in close resemblance to Bitcoin.
The drop from the run up was expected not all stocks go straight up I still think MARA is in a great position for a run up.
📊 How to: The Double Bottom Pattern📍 What is the Double Bottom Pattern?
The double bottom pattern is a trend reversal pattern observed on charts, such as bar and Japanese candlestick charts. Similar to the double top pattern, it consists of two bottom levels near a support line called the neckline. The pattern indicates the end of a downtrend and is confirmed by two failed attempts to break the support level. As a bullish reversal pattern, it signifies a shift in momentum and is commonly used by traders to enter long buying positions.
📍 How to Identify
In general, it is fairly simple to identify a double bottom pattern on a trading chart. This pattern can be identified when the price retests the support line and rises up again above the neckline. As a tip, you can usually identify the pattern as a “W” letter formation.
💥 Key Takeaways
The double bottom pattern is a bearish momentum reversal resembling the letter W.
It requires three main elements: first low, second low, and a clear neckline to identify the formation.
The pattern is more effective at the end of a strong downtrend rather than in a ranging market.
Drawing a support level and a neckline is necessary to trade this pattern.
Confirming the pattern with other technical analysis tools like moving averages, RSI, Fibonacci retracement level, and MACD is important.
The recommended approach to trading the double bottom pattern is to wait for the price to break the neckline with a stop-loss order and assess the risk-reward ratio.
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A Double Bottoms Pattern!The double bottoms pattern is a common chart pattern used in technical analysis, including scalping strategies. It is a bullish reversal pattern that can signal a potential trend reversal from a downtrend to an uptrend.
- In scalping, traders aim to take advantage of short-term price movements and generate quick
profits. The double bottoms pattern can be used to identify potential buying opportunities for
scalpers. Here's a general description of the pattern:
- Downtrend: The price is in a downtrend and reaches a low point, forming the first bottom
(low).
- Reversal: After the first bottom, the price bounces back up but fails to sustain an upward
movement, leading to a minor pullback.
- Second bottom: The price then declines again, but this time it does not reach the previous
low. Instead, it forms a second bottom, which is typically higher than the first one.
- Confirmation: Once the second bottom is formed, traders look for confirmation signals to
enter a long (buy) position. This may include a breakout above a resistance level, a bullish
candlestick pattern, or an increase in trading volume.
- Target: The target for the trade is often set by measuring the distance between the bottoms
and adding it to the breakout point. This provides an estimate of the potential upside move.
- It's important to note that scalping strategies often rely on quick trades and small price
movements. Therefore, it's crucial to incorporate additional technical indicators, such as
momentum oscillators or moving averages, to enhance the accuracy of the signals and
manage risk effectively.
Remember, before implementing any trading strategy, including scalping, it's advisable to thoroughly backtest and practice it in a simulated or demo environment to gain confidence and refine your approach. Additionally, risk management and proper position sizing are essential aspects to consider in scalping or any trading activity.
HINDALCO - Bullish Momentum with VolumesNSE: HINDALCO is closing with a bullish momentum candle supported with volumes.
Today's volumes and candlestick formation indicates strong demand and stock should move to previous swing highs in the coming days.
The stock has been moving along the horizontal support for the past few days which is indicating demand.
One can look for a 8% to 12% gain on deployed capital in this swing trade.
The view is to be discarded in the event of the stock breaking previous swing low.
#NSEindia #Trading #StockMarketindia #Tradingview #SwingTrade
AUDCAD potential 140 pips! AUD pairs skyrocketed Tuesday after the interest rate decision.
AUDCAD pair broke a key resistance and is currently trading above it, closing above it 0.9106 (double bottom neckline) confirms the chart pattern and takes us to test the next supply area between 0.92102 and 0.92167.