Double Bottom Watch a video with double top bottom forex charts detailed description of the Double Bottom Chart Pattern. The Double Bottom technical analysis charting pattern is a common and highly effective price reversal pattern. To create a double bottom pattern, price begins in a downtrend, stops, and then reverses trend.
However, the reversal to the upside is short-term. Price breaks again to the downside only to stop again and reverse direction upwards. With the second bottom of the double bottom pattern, it is usually more bullish if the second low is higher than the first low. Double Bottom Potential Buy Signal A potential buy signal is given when the confirmation line is penetrated to the upside. Often, after price penetrates the confirmation line, price will retrace for a short time, sometimes back to the confirmation line. This retracement offers a second chance to get into the market long.
The Double Bottom reversal pattern is a heavily used charting reversal pattern. The information above is for informational and entertainment purposes only and does not constitute trading advice or a solicitation to buy or sell any stock, option, future, commodity, or forex product. Past performance is not necessarily an indication of future performance. Double Top View a more detailed Double Top Chart Pattern Video. The Double Top technical analysis charting pattern is a common and highly effective price reversal pattern. Second High: Prices don’t retreat for long because bulls make another run, making a similar high. Double Top Potential Sell Signal A potential sell signal is given when price closes below the confirmation line.
The information above is for informational and entertainment purposes only and does not constitute trading advice or a solicitation to buy or sell any stock, option, future, commodity, or forex product. Past performance is not necessarily an indication of future performance. 2, moved by 3 bars into the future. Alligator indicator helps to determine the presence and absence of a trend as well as its direction. If lines are intertwined or laid in the wrong order or are moving close together as one, it means that Alligator is sleeping with its mouth closed. Traders should not open new trades.
As Alligator sleeps it becomes hungry. 3 lines move closer together or intertwine again. Elliott wave traders can use Alligator as a helping indicator to identify impulsive and corrective waves: when price trades outside Alligator’s mouth, the impulsive wave is forming, when price trades inside Alligator’s mouth, the corrective Elliott wave is forming. Don’t feed the Alligator when it sleeps! Can anyone explain the rationale behind shifting the Alligator lines forward in time? Either way, Alligator indicator will only show what’s happening now, it won’t get any forecasting value no matter what Shift settings are.