Double Bottom Module 6

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Transcript

00:00Next example is Double Bottom. Same application, same concept, it's just that it's on the reverse side.

00:08Identify a Double Bottom from the bottom. Identify a neckline. Once the market pushes through or breaks through the neckline,

00:17retest, make your entry or retest, form a confirmation and then make your entry. It's up to you what kind of risk you want to take.

00:25Alright, so let's get into the charts.

00:28Nice and easy. Easy tricks. Let's go.

00:33Over here, we can see another typical day in Dow Jones. Same example, same instrument. Still on Dow Jones.

00:42We have to monitor and wait for a Double Bottom to happen before we can take action into it.

00:50We just let the market run, do whatever it wants to do because we are only waiting for a Double Bottom to form.

00:56Now, we can see here in that one hour time chart, that price makes its way down, went up, went down, left a very long week over there.

01:06Hence, forming a Double Bottom. That would be your first bottom and then that would be your second bottom.

01:14Now, we have to identify where the neckline is. It should be the point where it reverses back to the second bottom.

01:25From first bottom, retrace, goes back down to the second bottom. That week is your neckline.

01:31Now, you will have to wait and see for a breakout, a retest. Mr. Dow, back to Mr. Dow.

01:38So, to zoom in and see how Mr. Dow takes place, we go into the 15 minutes time chart.

01:45All we have to do now is wait for a confirmation candle if we were to apply Mr. Dow.

01:52As you can see now, price is still floating around the area. No confirmation as yet.

01:58A strong bullish like that one. There we go. That one over there. That is a strong bullish confirmation.

02:05It broke the structure of the consolidation. Hence, I'm going to enter my buy over there.

02:10Same principle, where can we put our TP?

02:14Find the pole from the start of the trend to where the lowest bottom is.

02:20And from there, we drag the pole from the neckline to the top and that is your estimated TP area.

02:28I'm going to push it up there and then stop loss. This time, you're going to have stop loss.

02:33From the previous low of your bottom most candle. That's the lowest already.

02:39If you scroll left, I can't see any low. So, we take it as that.

02:42And then, we let the market run and we see how it plays out.

02:48So far, we are in greens. Now, what do we do once we are in greens?

02:53Straight away, push your stop loss to your entry point or slightly above your entry point.

02:59So that it is a risk-free trade.

03:03Now, we just wait for the price to take its course and boom, we hit TP.

03:08As easy as that, that is your example of double bottom.

03:12Next, we're going to look into the flags. Easy, right? Nice and easy. Easy trades. Let's go.

03:18Nice and easy. Easy trades. Let's go.