What is Double BOTTOM? What are their conditions to determine the bullish trend?

[EQSIS]

What is Double BOTTOM? What are their conditions to determine the bullish trend?

[Abirami Duraisamy]

When the daily price is plotted with line charts, there should be two visible equivalent bottoms with the duration of 1 month timeline with high volume in second bottom.

Condition for bullish: Two equivalent bottoms with 1 month duration & high volume at the second bottom or the neck line and trend goes up above the neck line.

[Pradeep]

When a chart is plotted with the data and if we found there are two bottoms formed which are very much similar we can say a double bottom is formed, it will look like a Letter “W”.

The twice touched low is considered as  a support level. If the stock moves up again after touching the low which was previously formed then we can considered the trend is bullish.

[bhavani]

Double bottom conditions:

Two equalant bottoms

Volume should be higher after the second bottom or at the breakout

Duration is 20 days to 1 month

long positions can be created when it exceeds the previous high.

[khushi]

double bottom is when we make 2 equivalent bottoms in the shape of “w”. volume should be higher on second bottom. duration between one bottom and the second one should be 1 mth. we should create a long position if the price crosses the neckline.

[Author]

Posts