Trading Double Bottom Pattern

Double Bottom

4/6/0712:02 PM

Target i


Double Bottom


Double Bottom

Source; TradsStation



Trading the Double Bottom Pattern

The example above illustrates a "Double bottom" pattern formation from the Google (GOOG) chart. GOOG made a "Double bottom" from June 2006 to August 2006 at $370 level. The "Double bottom" patterns are relatively easy to trade. A "long" trade is triggered at the breakout of the "swing high" (at $430). The depth of the "Double bottom" pattern is $60.

1. Enter a "long" trade above the high of the breakout bar at $430 level.

2. Place a "stop" order at the middle of the channel (trading below may be "triple bottom").

3. Target the depth of the "Double bottom" pattern above the trade entry.

11.12. Triple Top Pattern

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