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

[Shiva]

Double BOTTOM is qualified when there are 2 equivalent bottoms

Duration between the 2 bottoms should be 20 days to 1 month

High Volume should be present at the second bottom ie the neckline

Long position to be created when it crosses the neckline.

 

[Hema]

Double Bottom is a reversal of Double Top which is two bottoms are equal.

conditions :

• Two equivalent bottoms should be identified.
• The duration between first and second bottom should be min 20 days
• high volume should be present at second bottom or when it crosses the previous top.

[Vishal Rath]

Double bottom is a pattern with two bottoms and one top between the bottoms.

Conditions: Traded volume should be high at right bottom or at equivalent price of previous top (after the right bottom).

[Darshan Arvindbhai Shah]

Double Bottom is nothing but the exactly Opposite to Double Tops

It is a Price patten which identifies the Bullish Trend

 

There are following conditions which qualifies as Double Bottom

1. There should be two equivalent Bottoms

2. The duration should be at  least 1 month between Both the Bottoms

3. Volume Should be Higher at the very next previous bottom or at least

Volume Should be Higher when price moves Up Side and comes near to the previous Top

 

When Above condition matches ..

And price keep on moving Up Side and crosses the previous Top

We Can create Long Position and we can consider as Bullish Trend

 

 

[Dipakk Mehta]

Double bottom indicates a strong resistance zone.

two equivalent bottoms

with minimum 20-30 days time between them

high volume at second bottom

when price moves past the level of previous top a bullish trend is identified.

[Author]

Posts