Double Bottom Reversal Chart Pattern Video Lecture - Chart Pattern Trading

good afternoon everyone this is
Christian with perfect stock alert calm
a 100% free service for smart investors
and traders all we ask and return a
please refer a friend or I'll hit you in
the face with a brick what I can't I
can't say that today we're going to be
looking at the devil bottom reversal
chart pattern and this is a reversal
trend pattern basically going to turn a
downtrend into an uptrend therefore the
first thing you're going to have to have
before you can see it is a downtrend so
what you need to see is a high point
followed by a low point lower high a
lower low lower high and just game keeps
going on this is your downtrend okay
just we'll go over a couple of months
before you can even potentially see a
double bottom reversal chart pattern
form the first thing you're going to
note when ever you get to the low point
of the bottom is that reaction move back
up and that trend move up here from this
loads you saw here let's draw it out
real quick
okay alright so you're going on down
here make a move up here that move up
here will do multiple things number one
it will typically be a move higher than
a previous high like you saw here now
higher here the old downtrend line okay
can be broken by that move up here these
are all signs telling you that a
possible reversal is taking effect that
will be the first things to note okay
it's not important don't put a lot of
weight on how much volume is behind this
initial move off of the first low of the
devil bottom though it should have
increased by volume like we have here
that would you know give us more
confidence but it's not that important
in the first stage okay
oftentimes when you're after you've had
that move you'll see either rolling over
kind of a slow move like this or you can
see a little bit of price ik to be
bouncing around up here but it doesn't
wonderly want to go back down there
that's what you're noticing because buy
pressures is is there then you'll have a
pullback back down to test that previous
low that's going to be starting the
potential
for a double bottom remember that's just
potentials not a double bottom yet
regarding the low points they don't have
to be identical you know penny to penny
and they can be within 3% most technical
analysts looking as being a double
bottom if it's within 3% of the previous
low so you've got this one at 20 165 and
this one just ever so slightly higher at
about 20 175 son like that
alright this still just a potential
bottom we don't actually know until we
break out so then we have our next move
to the upside here and you notice in
this particular case you do want to pay
more attention to the volume you should
see an increase of volume on the move
higher and it should continue into the
point of the breakout the breakout being
higher than the previous High Point here
you draw the trendline there that's been
your resistance level there and you
broke through that resistance making an
even higher high and this one here
you've got to see strong volume
convincing you that is there and this
one you also sometimes have an
opportunity where price activator is
broken through it will pull back down to
test this resistance line to see if it's
now acting as support here it was and
that would be your secondary by
opportunity if you've missed a breakout
by opportunity now you have an
opportunity on the test here before
going higher let me clean this chart up
a bit all right now as is the case with
many different chart patterns this one
you can take the low point of the double
bottom
2165 and then draw a line from this
point up to the resistance level and you
will take this distance subtract from
the breakout go I'm sorry
add to the breakout point in this
particular case and that tells you about
how high to expect a price activity to
go from the breakout point okay this
little tool you can use to gauge the
target price of the move you expect to
see okay couple items to note regarding
the double bottom reversal chart pattern
much like the double bottom I'm try the
double top reverse
our pattern you should see this form
over a period of three one to three
months at least a couple of days isn't
going to account you're not going to be
looking at the same thing what you want
to see in that volatility is about 10 to
20 percent if you don't have that again
you're not looking at the same thing
these are the elements that are going to
be required for you to be more confident
on this particular reversal pattern okay
please take a moment to review our
disclaimer the information provided here
it is our opinion only under no
circumstances do any statements here
represent a recommendation to buy or
sell securities or make any kind of an
investment you are responsible for your
own due diligence to summarize we do not
provide investment advice nor do we make
any claim or promises that any
information here will lead to a profit
loss or any other result these videos
are for educational purposes only