1) Weekly support (context)
Price is sitting near a multi-week demand zone (prior swing lows / consolidation base). Weekly supports matter because bigger timeframes filter noise and attract institutional flows.
When price returns to a weekly support and stabilizes, it often transitions from distribution to accumulation.
2) Daily double bottom (pattern)
A double bottom forms when price tests a low, bounces, then retests roughly the same low and rejects it again. That shows buyers defending the level twice.
The neckline is drawn across the swing high between the two lows. A daily close above the neckline confirms the pattern.
3) Volume confirmation
Healthy: rising volume on up-days, especially on the rally from the second bottom and on the neckline breakout. That says demand is active, not just a technical bounce.
4) Risk line (“invalidates below today’s low”)
Your statement “bullish till it holds today’s low” defines a clear invalidity level. If price closes below today’s low, it suggests the second bottom failed—cut risk there.
5) Trade planning (illustrative, not advice)
Entry ideas:
(a) Aggressive: near current price with stop just below today’s low.
(b) Conservative: on a confirmed close above the neckline, or on a pullback/retest to the neckline that holds.
Stops: A few ticks below today’s low (aggressive) or below retest low (conservative).
Management: Scale partial at interim resistance; trail stop under higher lows / 20-EMA on the daily.
6) What would weaken the setup
Weak or declining volume on rallies, repeated rejections at the neckline, or a decisive daily close below today’s low/weekly support.
In short: Weekly support + daily double bottom + volume = constructive. Confirmation comes with a neckline break; invalidation is a close below today’s low.
Price is sitting near a multi-week demand zone (prior swing lows / consolidation base). Weekly supports matter because bigger timeframes filter noise and attract institutional flows.
When price returns to a weekly support and stabilizes, it often transitions from distribution to accumulation.
2) Daily double bottom (pattern)
A double bottom forms when price tests a low, bounces, then retests roughly the same low and rejects it again. That shows buyers defending the level twice.
The neckline is drawn across the swing high between the two lows. A daily close above the neckline confirms the pattern.
3) Volume confirmation
Healthy: rising volume on up-days, especially on the rally from the second bottom and on the neckline breakout. That says demand is active, not just a technical bounce.
4) Risk line (“invalidates below today’s low”)
Your statement “bullish till it holds today’s low” defines a clear invalidity level. If price closes below today’s low, it suggests the second bottom failed—cut risk there.
5) Trade planning (illustrative, not advice)
Entry ideas:
(a) Aggressive: near current price with stop just below today’s low.
(b) Conservative: on a confirmed close above the neckline, or on a pullback/retest to the neckline that holds.
Stops: A few ticks below today’s low (aggressive) or below retest low (conservative).
Management: Scale partial at interim resistance; trail stop under higher lows / 20-EMA on the daily.
6) What would weaken the setup
Weak or declining volume on rallies, repeated rejections at the neckline, or a decisive daily close below today’s low/weekly support.
In short: Weekly support + daily double bottom + volume = constructive. Confirmation comes with a neckline break; invalidation is a close below today’s low.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.