double bottom stock chart pattern trading strategy // day & swing trading basics, double bottom explained stocks reversal forex rsi indicator david moadel welcome to looking at the markets with david modell today i wanted to discuss a powerful chart pattern and that is known as the double bottom okay so let's take
apple stock price premarket, a look at some examples here's houghton mifflin harcourt which is an educational textbook company and you can see right here look at all those
red candles in a row down down down but it wouldn't go below 925 $9.25 a share and by the way this is the daily candlestick chart from stock charts calm alright so they couldn't push it below 925 and then it retraced it went up partially and then they try it again the market tried again to push it below 925 couldn't do it when they keep trying to
push it below a certain level and it just won't go below it you can call that a support level and right about here you could have recognized that this is a double bottom when it comes down to approximately the same level twice but just won't go below it and then starts to come back up and if you had recognized the pattern here and bought
you would have done quite well you would have enjoyed a nice run up here give you some more examples amborella you can see the double bottom pattern right here they try to push it below the $49 level try it once retraced partially came down to approximately the same level and it doesn't have to be exactly the same level it can be approximate because this
is not an exact science and they tried a second time to push it below that level couldn't do it right around here if you had recognized the double bottom pattern you could have bought and enjoyed a nice run up here here's opb double bottom pattern right here try to push it below the 19 level or so try it once
couldn't get it below there retraced partially try it again couldn't do it if you had bought right here seeing that it's a double bottom pattern you would have enjoyed a nice profit there here's google double bottom pattern here down up partially down to about the same level and a nice run up there and to continued run up if you held it on for
held on to it for longer this is facebook down up down to the same level around 115 they could not push it below 15 no matter how hard they tried and then if you had recognized right here that it was a double bottom you could have bought it and enjoyed a massive run up here you might actually see this as a triple bottom which is also a chore
chart pattern look how many times they tried to push it below 115 once twice three four times they just couldn't do it that is a strong support level here and that's very bullish alright so you need to want to you want to start recognizing these double bottom patterns or triple bottoms which is even more powerful really because that's a
stronger support level and when you recognize it it shouldn't be your only signal but it's one of many signals in our chart patterns in your toolbox alright and you can go on here's another free website besides stockcharts.com this is fin viscom alright and if you go on fin fi n viz comm and you look down the page usually or sometimes you'll see
a link that says double bottom somewhere you have to look for it sometimes and you click on it and it shows you a whole bunch of double bottom patterns here's a pop-up and now that doesn't mean that you buy every single stock here i mean you know some of these stocks are going to be better than others but you know double bottom patterns can be very
powerful and so this is an easy way to look for them to screen for them okay so i hope this was helpful to you if you like this video please give this video a thumbs up on youtube and leave a comment and please subscribe to my youtube channel so you can continue to receive updates on my financial educational videos and if you want any help with
chart patterns or putting together a trading or investing plan you can contact me by email my email address is david modell at gmail.com thank you so much for watching and i'll talk to you again soon
