avinash786

Double Bottom Pattern failed?

NSE:FEDERALBNK   FED BANK
hey guys im new in analysis can anyone tell me this pattern is double bottom or Not.. You can see Gap In 2nd Bottom and Market also break the rules of double bootom.. thats why im confused to judge whats Going on

can anyone expalain me ?
it was a good double bottom , one should take position only after the neckline breaks that is after the confirmation of the pattern .
in this case, neckline was broken with good volume which was a good indicator.
but the next big red candle showed that the bull move was rejected .
the high volume in the red candle showed that there were lot of suppliers ready to sell .
if the volume had been low on this red candle, then one can expect the price to bounce back .
perhaps, this candle gave a strong signal for the bulls to exit from the position.
+1 Reply
avinash786 piyushrawtani
@piyushrawtani, thank you so much for this explanation
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You see that big gap up there? Some one is too bearish at higher levels.

Firstly, Double bottom is not broken as of now. Secondly, We can't expect parabolic moves after double bottom. Stocks may stay in range for weeks before they move in any direction.

By the way downside momentum is slowing down as I observed in your chart. May pull up again.

Nothing is for granted in this business.
All the best.
+1 Reply
avinash786 Bravetotrade
@Bravetotrade, Thanks
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avinash786 avinash786
@avinash786, If you have time then please tell something about this chart



This Chart posted by me..
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You have identified the double bottom Pattern correctly. Now to the second question why it didn't work : It may happen to any pattern and specially with pattern which are more commonly formed and double bottom is one of these patterns.
+1 Reply
avinash786 praveen.bhatiya
@praveen.bhatiya, Thanks Bro
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@avinash786, You are welcomed. Encyclopedia of Chart Patterns by Thomas Bulkowski is one of the best book on chart patterns.
+1 Reply
avinash786 praveen.bhatiya
@praveen.bhatiya, sir its very costly
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@avinash786, If you want i can send you just give your email.
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