【Thursday Special】Could You Find Double Bottom Pattern?
Welcome to Thursday Special!
Whether you are a beginner or an experienced investor, everyone has their own opinions on the stock market trends. How do you make these judgments?
Let's start a series of learning patterns and apply them to individual stock trends.
Can you spot the “W” in this pic?
Could you guess which stock this is based on the following trend?
What Is a Double Bottom Pattern?
It describes the drop of a security or index, a rebound, another drop to the same or similar level as the original drop, and finally another rebound (that may become a new uptrend). The double bottom looks like the letter "W." The essential characteristics of the double bottom pattern are as follows:
The double bottom pattern looks like the letter "W." The twice-touched low is considered a support level.
The double bottom pattern always follows a major or minor downtrend in a particular security, and signals the reversal and the beginning of a potential uptrend.
Double bottom patterns occur relatively often and in many different timeframes.
A daily double bottom may indicate a longer-term reversal or shift in trend, while an hourly double bottom may signal only a brief pause in a down trend.
Generally speaking, the longer the duration between the two lows in the pattern, the greater the probability that the chart pattern will be accurate.
💭So, today's homework is to find a stock with a double-bottom pattern!
Please take a screenshot and highlight the double bottom pattern.
For example: $Netflix(NFLX)$
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