We offer two trading strategies in meeting the figure Double Bottom, an aggressive and a conservative.
Double bottom is formed when prices fall to new lows, then rises, and then returns to the same level. If the price is raised to higher levels than initially achieved, this confirms the double bottom, as the figure of the graph must be oprelichava with "W"
More aggressive marketing strategy in double bottom is when the market is near the previous low just to get a buy position, stop loss level is placed just below the lowest level reached low enough to enable the market to extend bottom without to activate the stop loss-a.
More conservative traders wait for confirmation of the double bottom. This happens when the price goes higher level and cross etc neckline. Once this happens, the scheme has been completed and it is believed that the formation is fully active, it is an occasion for purchase by investors. Although the scheme is completed, those traders should put stop loss at a price below the lowest level reached reached in the formation of the model and therefore are faced with greater potential loss as opposed to traders who buy near bottom, without waiting for confirmation of the pattern.
The purpose of profit is an example, if the bottom is at level 100, and the adjustment between the lower two points to reach 120, then the purpose of profit for buyers 140 or 120-100 = 20 and 120 + 20 = 140
Varchev Finance
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