Double Bottom Reversal Strategy
Double Bottom Reversal Strategy
Double bottom down indices trend reversal strategy is a reversal indices pattern which forms after an extended down indices trend. Double bottoms down indices trend reversal trading strategy is made up of two consecutive troughs which are roughly equal, with a moderate peak between.
Double bottom down indices trend reversal trading strategy formation is considered complete once stock indices trading price makes second low and then penetrates highest point between lows, called the neckline. The buy indication from this bottoming out signal occurs when stock indices market breaks-out the neck line to the upside.
In Indices, Double bottom down indices trend reversal strategy formation is an early warning stock indices signal that the bearish Indices trend is about to reverse.
Double bottom down indices trend reversal trading strategy is only considered confirmed once the neck-line is broken. In this Double bottoms down indices trend reversal trading strategy formation the neckline is resistance level for indices trading price. Once this resistance is broken the stock indices trading market will move up.
Summary:
- Double bottom down indices trend reversal trading strategy forms after an extended move downward
- This Double bottom down indices trend reversal trading strategy formation indicates that there will be a reversal in stock indices trading market
- We buy when stock indices price breaks above the neck line point: see below for explanation.
Indices Trading Down Trend Reversal Strategy - Double Bottom Reversal Strategy
The double bottom reversal trading pattern looks like a W Shape, the best reversal stock indices signal is where the second bottoms is higher than the first one as displayed below, this means that the reversal can be confirmed by drawing an upwards indices trend line as shown below.
Double Bottoms Indices Trend Reversal Indices Trading Strategies
