Process to identify Double Bottom Pattern: 1) Find out Support/Demand Zone in the script 2) Use RSI to identify any divergence in current trend 3) Place Early Entry or Wait for any candlestick pattern confirmation - i.e Hammer , Bullish Engulfing, morning star or others bullish pattern.
Entry and Stop Loss: 1) Early entry at support level on basis of RSI divergence in 2nd bottom 2) Confirmation entry will be after closing of bullish candlestick Pattern 3) Stop loss should be 0.50-1% below the support zone.
Exit/ Profit Booking: 1) Initial Target Will be top of this pattern. 2) If double bottom is for 'W' pattern then projected target will be top of the 'W' pattern. 3) Good way to achieve higher target is by trailing stop loss. For Trailing stop loss we can use trendlines or any other trend pattern.
Hi sir, why there is no new ideas coming from your side ?
shshuf1944
⋅
This study is made on a 15 min time frame. Which is an intraday time frame and concepts like double bottom or double top have to be applied on a larger timeframe to be more effective I believe. As of the time I am rwiting this the market has reversed from that proverbial double top !!!! and has hit more than 6 to seven stop losses