Double Bottom Stock Chart Pattern Trading Strategy // Day & Swing Trading Basics, double bottom explained stocks reversal forex rsi indicator david moadel
welcome to looking at the markets with
David Modell today I wanted to discuss a
powerful chart pattern and that is known
as the double bottom okay so let's take
a look at some examples
here's houghton mifflin harcourt which
is an educational textbook company and
you can see right here look at all those
red candles in a row down down down but
it wouldn't go below 925 $9.25 a share
and by the way this is the daily
candlestick chart from stock charts calm
alright so they couldn't push it below
925 and then it retraced it went up
partially and then they try it again the
market tried again to push it below 925
couldn't do it when they keep trying to
push it below a certain level and it
just won't go below it you can call that
a support level and right about here you
could have recognized that this is a
double bottom when it comes down to
approximately the same level twice but
just won't go below it and then starts
to come back up and if you had
recognized the pattern here and bought
you would have done quite well you would
have enjoyed a nice run up here give you
some more examples Amborella you can see
the double bottom pattern right here
they try to push it below the $49 level
try it once retraced partially came down
to approximately the same level and it
doesn't have to be exactly the same
level it can be approximate because this
is not an exact science
and they tried a second time to push it
below that level couldn't do it right
around here if you had recognized the
double bottom pattern you could have
bought and enjoyed a nice run up here
here's OPB double bottom pattern right
here try to push it below the 19 level
or so try it once
couldn't get it below there retraced
partially try it again couldn't do it if
you had bought right here seeing that
it's a double bottom pattern you would
have enjoyed a nice profit there here's
Google double bottom pattern here down
up partially down to about the same
level and a nice run up there and to
continued run up if you held it on for
held on to it for longer this is
Facebook down up down to the same level
around 115 they could not push it below
15 no matter how hard they tried and
then if you had recognized right here
that it was a double bottom you could
have bought it and enjoyed a massive run
up here you might actually see this as a
triple bottom which is also a chore
chart pattern look how many times they
tried to push it below 115 once twice
three four times they just couldn't do
it that is a strong support level here
and that's very bullish alright so you
need to want to you want to start
recognizing these double bottom patterns
or triple bottoms which is even more
powerful really because that's a
stronger support level and when you
recognize it it shouldn't be your only
signal but it's one of many signals in
our chart patterns in your toolbox
alright and you can go on here's another
free website besides stockcharts.com
this is fin viscom alright and if you go
on fin fi n viz comm and you look down
the page usually or sometimes you'll see
a link that says double bottom somewhere
you have to look for it sometimes and
you click on it and it shows you a whole
bunch of double bottom patterns here's a
pop-up and now that doesn't mean that
you buy every single stock here I mean
you know some of these stocks are going
to be better than others but you know
double bottom patterns can be very
powerful and so this is an easy way to
look for them to screen for them okay so
I hope this was helpful to you if you
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videos and if you want any help with
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trading or investing plan you can
contact me by email my email address is
David Modell at gmail.com thank you so
much for watching and I'll talk to you
again soon