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Double Top or Bottom

What is Dounle Bottom Pattern?What is Double Bottom Pattern? The double bottom pattern looks like the letter "W". It indicates an trend and momentum reversal in a particular asset. It is best for analyzing the intermediate to longer-term view of a market. Double Bottom Pattern one of the most reliable reversal pattern after Head and Shoulders Pattern. How does Double Bottom Pattern Work? Double Bottom Pattern works in two phases: Phase 1: When the major trend is downtrend and forms the first down peak, then from the support the prices bounce to a new higher resistance and unable to break that resistance. Phase 2: When prices are not able to break the resistance it again goes to the same level and take support form similar levels forming second down peak also double bottom . Again due to demand the prices rises up to the resistance and break that resistance. Increase in volumes during breakouts further confirms the reversal move. This marks the completion of the pattern. Above Chart Explanation: This is the daily chart of EGLDUSDT here we can see in a downtrend prices take support and forms a down peak one and took support form there and bounce back to the above resistance. But prices were not able to break it instead prices got rejection from resistance and the prices again go down forming second down peak. After taking support prices bounces and break resistance due to heavy demand with great volumes. Usually traders enter on the breakouts and target the next resistance. Conclusion: Hence, the Double Bottom Pattern is great reversal pattern after Head and Shoulders Pattern. And it occurs quite often. Most of the traders use it on large time frames like 1D, 1W, 1M. Please let me know in the comments what do you think about Double Bottom Chart Pattern! Disclaimer: This is just an educational post never trade just any pattern. And please do your research before taking any trades. PS: We are publishing this for our Indian Audience again! Happy Trading !
Education
by Coinlog
7
Understanding Cup and Handle pattern with ONGC1. Cup and handle pattern was defined by William J. O'Neil in 1988 2. It is considered as a bullish pattern continuation pattern 3. In cup and handle pattern, volume of the security should decrease as price declines and remain lower than the average at the base of the cup 4. The volume should pick up when the price of the security moves higher 5. Target is usually calculated as the price difference between the bottom of the cup and the resistance(depth of the cup) 6. The handle of the cup is usually a consolidation phase that is used to accumulate the stock Let's not forget to thank ONGC for being a perfect example of Cup and handle pattern. Hope you learnt something new. Please post in the comments if you have any queries and give a like if you found the post useful. Happy learning! Regards, Segan
NSE:ONGCEducation
by segan_the_learner
How To identify whether stock is bottoming out? This Idea is my Bank of Baroda Positional Trade in diwali. Posting this because I got one query for my Recent BHEL Idea, where I've used similar Technique. As you can see 57 level marked with blue line is the level from where stock gave breakout twice, 2007 & 2009. it was a strong Resistance back then. In 2007 it moved from 54 to 92 In 2009 it moved from 54 to 211 Another important level was at 38. When market crashes in march 2020 it was moving in a band pf 38 to 57. Double bottom was also formed in that band. Another thing i observed was that stock was moving away form 200 EMA So mean reversion was also pending. 200 EMA was around 103 which was more than double. There was also a volume spike. Overall these made me conclude that stock was bottoming out . Based on buy call was at 46 during Diwali for a target of 92 baeed on support and resistance levels. Check zoomed pick below
NSE:BANKBARODAEducation
by varadtambolkar
10
Good opportuniy to invest in GOLD.All observations on chart. MULTIPLE CONFIRMATIONS & EXPLANATIONS OF DRAWINGS As you can see gold bounced tom 38.2% fibonacci level a good level to buy the dip. 19% correction from the top till pre covid levels Falling channel pattern visible on charts, usually gives good move on the upside. Double bottom pattern breakout given today. Price comfortable above 20 moving average & made a new swing high Overall this is attractive price to enter from long term view.
TVC:GOLDEducation
by varadtambolkar
6
Double Top (M) Chart Pattern What is Double Top Pattern? A double top chart pattern is a bearish reversal chart pattern that is formed after an uptrend. This pattern is formed with two peaks above a support level which is also known as the neckline. The first peak is formed after a strong uptrend and then retrace back to the neckline. After reaching back to its neckline, the price becomes bullish and rises again to form the second peak. The formation of this pattern is completed when the prices move back to the neckline after forming the second peak. When the prices break through and closed (daily) the neckline or the support level then the bearish trend reversal is confirmed. # Trading with Double Top:- *Firstly one should see the market phase whether it is up or down. As the double top is formed at the end of an uptrend, the prior trend should be an uptrend. * Traders should only enter the short position when the price break and closed in daily time frame below the support level or the neckline. # Stop Loss: In the case of a Double Top chart pattern, the stop loss should be placed at the second top of the pattern or as per your risk reward. # Price Target: The price target should be equal to the distance between the neckline and the tops. Kindly Let us know if you have any question . Thank you .
NSE:NIFTYEducation
by PrasantaP
8
Double Top Pattern* A double top is a strong bearish reversal pattern. It occurs when an uptrend fails to make a higher high and instead, makes an equal (or near equal) high. * The psychology behind the pattern is that the failure to make a higher high could be an early sign that the momentum is leaving the uptrend. The equal high is an indication that the previous high is being tested and confirmed as resistance. All this means that a reversal is likely to happen. * As you can see from the image above, two horizontal lines are drawn off the double top. The top line is the resistance line. The second line marks as support line where you can enter in trade after breakdown. *To get your profit target for this pattern, you measure from the resistance line to the breakout line. Then you take that measurement. Kindly Let me know if you have any Questions. Thank you .
NSE:DRREDDYEducation
by PrasantaP
3
Nifty & Bank NiftyBoth Nifty & Bank Nifty are at an Ichimoku Price & Time axis equilibrium today with Nifty probability of a Double Top and Bank Nifty at a Bearish Harmonic Reciprocal AB=CD. Nifty has support at 11750 while Bank Nifty has support at 24650. Breach of both could lead to further downside till 11400 & 23000 respectively. View would negate above 12100 & 25200 accordingly. Price & Time Axis Equilibrium is an Ichimoku concept of reversal in trend. As per the study Time is vital price is just a consequence AB=CD are Harmonic Trading Patterns based on alignment of specific ratios
NSE:NIFTYEducation
by Dinesh_C_Nagpal
4
INTRADAY TRADING PSYCHOLOGY (near LONG TERM SUPPORT/RESISTANCE)I come across many times when people fall in trap when they see breaking of long term support or resistance in intraday by merely seeing on small timeframe (TF) like (1-5 mins). I suggest those friends to wait for the confirmation of such breakout on higher timeframe like 15-30 minutes atleast. In this example I would like to make you understand this psychology and how you can make most of it in intraday trading. Bharatforge started falling right from the beginning and broke its long term support at smaller TF and you can see how they trapped the bears. (You can see many examples like this on this day like which I traded in PEL (Horizontal support 1300) and BPCL (Trendline support) We could have initiated a countertrend trading when it came above the support but that I will not recommend if you are not pro. Instead, bharatforge formed a beautiful double bottom at this support (bullish piercing candle pattern as well). So, this trade becomes high probable with first target to swing high. SL to be maintained below the support. So, in intraday FIND SUPPORT / RESISTANCE and FIND PATTERN. This way you can make consistence profit. Thank You. Happy Trading
NSE:BHARATFORGEducation
by Retailer_ki_dost
8
BANKNIFTY LEVELS 18/09/2020Currently sitting at a support zone of 22280-22300. Break below this can take us to 22090. Above 22300 we have 22505, 22650. Have a look on the chart for the support and resistance levels. Share your opinion in the comment section below, and like and follow for daily market analysis ! Professional Trader | Experience: 2.5 Years NOTE: The above mentioned views are for educational purposes only. You acknowledge the fact that you are alone responsible for your profits and losses, we won't be responsible for any kind of loss that you might incur by following our signals.
NSE:BANKNIFTYEducation
by Anshul_Verma