Simple trend reversal pattern identification. Pattern preceded by Down trend
Pattern location is very important for pattern to workout. here pattern is formed exactly at the breakout level. So chances of pattern to work out. Never follow patterns in isolation, combine other things with it.
Breakout candle is having a wick, so have a cautious approach.
Check BHEL Idea. How trend reversal double bottom pattern worked out
Is retesting awaited? & what is significance of wick? Bearish?
varadtambolkar
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@drdc11, when there's a wick at breakout candle, it shows bears have some control. Chances of breakout failure are there. Other way you can interpret that people stuck for longer time have used this sharp upmove to exit. Here in force motors it looks like the second case more. Buy less qty and go with full allocated qty Above the wick. If you re risk taker can go with increased qty. It's all about managing the Trade.
drdc11
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@varadtambolkar, thank u such elaborate reply.. Can u also please explain what is "absorption of volumes" at breakout