I have started practicing the chart patterns. Is this a double bottom or any other criteria should I follow?
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Its a nice double-bottom pattern. If this was intra-day I would give it less reliance.
A good pattern gives you -
probable direction
probable entry timing
opportunity to see confirmation in the chart
entry price
opportunity to see where entry should be cancelled as too late
stop-loss price
target price
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@tommor, I have drawn another one but I’m confused about which point need to take.
- Middle of the bottoms high?
- The highest point?
The key point to take is the highest point reached between the two bottoms. Once this is breached, price has confirmed the double bottom pattern: many people wait for a candlestick to close above the high point before treating this as confirmation.
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Yes, I do wait for a second candle too.