Double Bottom

Trend reversals often require a comfirmation when reaching top or bottom. When a previous retest of a previous bottom holds the chart formation is called a double bottom and it may lead to a bullish uptrend. To verify the double bottom they should both be near significant daily support 1 or daily support 2 lines.
The dupport level on the second level deals as an entry level.
Price targets depend on further analysis depending on personal preferences, sentiment and outlook.
A stoploss may be placed around 35 to 50 pips below the first bottom and can be moved to break even once price moves about the 80 EMA or above daily pivot points.

double bottom
Double bottoms and tripple bottom work in the same way. The last of the bottoms leads to a bounce up. Beware of the last bottom to correspond with a daily support 2 or support 1 with a healthy distance for a possible stoploss.

GBPCHF and other Sterling crosses are among those responding well to support and resistance levels on daily, weekly and historically relevant time frames.

Leave a Reply

Your email address will not be published. Required fields are marked *