What is the double bottom chart pattern strategy?

The Double Bottom chart pattern strategy gives you a simple way to quantify risk because you can place your protective stop-loss slightly below the double bottom pattern. The double bottom pattern really gives you the opportunity to also trade with a tight stop loss, which is great as we always want to keep losses at a minimum.

How to determine the authenticity of the double bottom pattern?

Although the pattern may show on intraday price charts, determine the authenticity of the double bottom pattern when using intraday data price charts. A significant or small downtrend in a securities is always followed by a double bottom pattern, which predicts a reversal and the start of a prospective upswing.

What does a double bottom mean?

Double bottom patterns occur relatively often and in many different timeframes. A daily double bottom may indicate a longer-term reversal or shift in trend, while an hourly double bottom may signal only a brief pause in a down trend. What Does a Double Bottom Tell You?

What are the 4 rules for a double top/bottom?

In this lesson, I explain the 4 rules that a double top/bottom must abide for it to be legitimate. So for example: For a legitimate double bottom: #1 The 2nd bottom's price must reach the 1st bottom's wick low price level. #2 The 2nd bottom's price cannot... This is our first post in a series of posts about chart patterns.