double bottom forming, page-30

re: double bottom forming /failure today Failure of the double bottom pattern today.

An entry for this pattern is only valid once the stock advances from the second low of the pattern and then either continues until it breaks a trendline resistance or else breaks resistance above the peak between the two troughs.

In this case that entry would have been .038 (break of trendline) or .041 (break of peak).

Jumping the gun on this pattern is not advisable.


http://stockcharts.com/education/ChartAnalysis/doubleBottom.html