Monday, November 17, 2008

For GT Blog November 17, 2008

A word on Double Bottoms

The double bottom is a major reversal pattern that forms after an extended downtrend. The pattern is made up of two consecutive troughs that are roughly equal, with a moderate peak in-between

Sometime the right bottom is higher than the left bottom – but the volume must be greater on the left bottom in order to be valid

Caveat: Our Encana example is probably valid but is flawed in that the lows are very close together but the volume pattern is compelling

Bill Carrigan

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