BitcoinLargo
Double Bottom Pattern
Actualizado
Double Bottom Pattern
Formation:
A double bottom pattern is a bullish reversal structure that forms after a downtrend, where the price touches a low level (first bottom), rallies upward but fails to break higher resistance, and then retests the previous low (second bottom) before moving upward.
The two bottoms are near equal levels, creating a "W" shape.
Identification:
While a precise double bottom is not distinctly visible in the current chart section, one might interpret a similar pattern based on two lows around 93,300. The key confirmation lies in the price breaking above the neckline or resistance level at 94,230.
Additional Context:
The RSI at the bottom shows oversold conditions (below 30), with a possible bullish divergence where the price makes equal or lower lows, but the RSI shows higher lows. This supports the idea of a potential reversal.
Trading Opportunity
Entry:
After confirmation of the double bottom: Enter a long trade when the price breaks above the neckline (94,230).
Use a stop-limit order slightly above the neckline to ensure a confirmed breakout.
Stop-Loss:
Place the stop-loss just below the second bottom (93,200) to manage risk, as breaking this level invalidates the pattern.
Take Profit:
Measure the height of the pattern (distance between the bottom and the neckline, around 1,000 points) and project it upwards from the neckline for a target around 95,230–95,500.
Optionally, consider scaling out near resistance levels.
Additional Signals:
Watch for volume confirmation during the breakout.
Ensure the RSI exits oversold levels and aligns with upward price movement for stronger confidence.
By following this approach, traders can leverage the potential bullish reversal signaled by the double bottom to maximize profit while managing risk effectively.
Formation:
A double bottom pattern is a bullish reversal structure that forms after a downtrend, where the price touches a low level (first bottom), rallies upward but fails to break higher resistance, and then retests the previous low (second bottom) before moving upward.
The two bottoms are near equal levels, creating a "W" shape.
Identification:
While a precise double bottom is not distinctly visible in the current chart section, one might interpret a similar pattern based on two lows around 93,300. The key confirmation lies in the price breaking above the neckline or resistance level at 94,230.
Additional Context:
The RSI at the bottom shows oversold conditions (below 30), with a possible bullish divergence where the price makes equal or lower lows, but the RSI shows higher lows. This supports the idea of a potential reversal.
Trading Opportunity
Entry:
After confirmation of the double bottom: Enter a long trade when the price breaks above the neckline (94,230).
Use a stop-limit order slightly above the neckline to ensure a confirmed breakout.
Stop-Loss:
Place the stop-loss just below the second bottom (93,200) to manage risk, as breaking this level invalidates the pattern.
Take Profit:
Measure the height of the pattern (distance between the bottom and the neckline, around 1,000 points) and project it upwards from the neckline for a target around 95,230–95,500.
Optionally, consider scaling out near resistance levels.
Additional Signals:
Watch for volume confirmation during the breakout.
Ensure the RSI exits oversold levels and aligns with upward price movement for stronger confidence.
By following this approach, traders can leverage the potential bullish reversal signaled by the double bottom to maximize profit while managing risk effectively.
Operación activa
From Double Bottom to Triple Bottom
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