triple bottom stock This is a topic that many people are looking for. newyorkcityvoices.org is a channel providing useful information about learning, life, digital marketing and online courses …. it will help you have an overview and solid multi-faceted knowledge . Today, newyorkcityvoices.org would like to introduce to you Trading the Triple Bottom – Stock Chart Pattern. Following along are instructions in the video below:
“Triple bottom is also a reversal pattern. So with that being said since it s s a bullish pattern. It s going to do the opposite of what happens so its reversal typically what happens is it s on a declining area. It s going down.
It s coming back up goes down. It starts to hit this first bottom now since it s a triple bottom..
And we know it s going to hit basically three times and we know it s going to go to the upside. The pattern is easy to figure out. However the important thing to understand about this pattern is that until it creates that third bottom you should really treat these things as neutral patterns. Because right now it can start to form as a double top a head and shoulders a declining wedge or a descending triangle.
So you have to really be careful like this can really start turning into a lot of different things. So now you have your third bottom..
So we got one two three here s our third bottom okay. When we have that third bottom come into play here s our hitting our double top on one hand. But when it hit that third bottom and it bounced off now we can start treating it as either a neutral pattern. Which means it could continue going sideways or a triple bottom.
So if it breaks out right here past this resistance line right. Here this is our support line..
If it breaks past this then we want to enter that trade okay want to enter it right around there okay when it breaks out if it doesn t then it s going to continue going horizontally going in a sideways motion. Now this typically can go anywhere between three to six months. Okay volume again like other patterns it can decline slowly it may rise sometimes when it hits these bottoms just because people are distributing it they re not sure what pattern. It is so it might spike up a little bit right here the volume on the different points.
But really it should really spike when it s breaking this resistance area so you definitely want to see an increase in that volume. When it s breaking that resistance line and of course resistance will become support..
So now you have this as turned into support once it breaks and something to keep an eye on so that s kind of what a triple bottom is again really important to understand that you want to treat this pattern neutral up until the point of its hitting that triple bottom and starting to go on that incline and breaks out otherwise. It can be multiple patterns that you re unsure of so just be careful with that because it can get somewhat dangerous all right. I hope you enjoyed this video. If you like this video check out traders fly calm for more videos.
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