EDUCOMP - Is it a Double Bottom?

#5
dear friends

below are the images of EDUCOMP Fut EOD data

have a nice day
JB
Hello JB

First of all I have just started out, so plz take my comments in that view. This is what I learned (theory).

DB or multiple bottoms forming near the bottom of an range is considered as a reversal pattern. I learned from someone that it can also be considered as a continuation pattern but the best pattern to trade is failed double bottoms :)

I was adviced to look at patterns as nothing else but support and resistance, which are the basic components of the patterns and not to get bogged down in details about shapes.

For e.g in the DB on your chart, the second bottom is formed just a bit higgher, it means got support at that higgher level.

I have been tracking ID nifty charts for few days, and saw lots of Patterns that seemed like V, A, W or M and enquired about if at all it has some significance, on which i got the above gospel.

I do not track any shares, but looking at the chart it seems the support (DB) has worked but the resistance also has worked twice before (the first V of topmost W) also the recent high is very near on the higher side, so upside looks less promissing (unless that is what u r playing for), maybe when it breaks out above the recent time high as marked in the chart. But in that case (BO) I do not know how to calculate the risk reward.

Guess you knew all that and more. Do correct me wherever you find me wrong, so i can also learn.

Thanks
nb
 

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Prabhjeet

Well-Known Member
#7
Double Bottoms occur only in a downtrend... In an uptrend , in which Educomp at present is, we look out for double tops!!!!
moreover there is a time frame for a trend to be called a double top or bottom, there should be atleast a 3 weeks gap between the tops/bottoms to be qualified as double top/bottom
 

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