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
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
Posts
No comments:
Post a Comment