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lauralea
Mar 26, 2021 7:03 PM

Double Bottom 

Dollar General CorporationNYSE

Description

Price is at the neckline. Long entry would be a break of the neckline with an uptrend. I would imagine DG is getting a bit tired and is having issues at the neckline.

I think it will push through but not unusual to take a few tries. Sometimes hard resistance can knock a security back down.

Any pattern can fail and a double bottom can become a triple bottom )o:

You can measure bottoms by drawing a line from the bottom to the neckline. Then extend it up from the neckline using the magnet. This is a ball park guesstimate of where price may go.

As a rule, with a multiple bottom structure, you place a stop under the bottom. This is a tall structure making the stop too far away. I usually use the last pivot low when that happens. For me that is under 192.

Not a recommendation.
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