Double Bottom

hariesha · 1 Double Bottom Mon Jun 18, 2012 3:23 pm

hariesha

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I am not a great follower of Technical Analysis, other than for day trading.

There was much hype about double bottoms in the forum during last couple of weeks. Can some expert explain what actually a double bottom is?

Have we experienced a double bottom in CSE? To my observations market reached below 5800 levels twice during last six months. We are now in the 2nd ascend after reaching similar bottom points.

Can some TA expert describe the CSE position?

Whitebull · 2 Re: Double Bottom Mon Jun 18, 2012 7:12 pm

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Double bottom is some what like following JKH chart.(And longer the time duration for bottom formation the bottom is more reliable.) Breaking of resistance line complete the double bottom.If it is not broken market can go side ways.

And interestingly see the reversal of resistance line in to supportive line.

bottom - Double Bottom Jkh11

Now look at this CSE chart.It is more like a V bottom which is not a very reliable bottom....(Notice how many V bottoms and how they have failed).They say it is usually a manipulative bottom.

And there is a long term resistance line to break. If it is broken with a good volume there might be a hope.

bottom - Double Bottom Asi_411

hariesha · 3 Re: Double Bottom Mon Jun 18, 2012 7:55 pm

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Whitebull, Thanks for the reply. Can you kindly post the same CSE chart for last twelve month period, as in the case of JKH?

Whitebull · 4 Re: Double Bottom Mon Jun 18, 2012 8:00 pm

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hariesha wrote:Whitebull, Thanks for the reply. Can you kindly post the same CSE chart for last twelve month period, as in the case of JKH?

The chart of CSE I have already posted is for last 24months.Do you want 12month chart for more clear picture ? If so I can post.

bottom - Double Bottom Asi_511

Whitebull · 5 Re: Double Bottom Mon Jun 18, 2012 8:21 pm

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This is the JKH chart for last 24months.

bottom - Double Bottom Jkh_210

traderathome · 6 Re: Double Bottom Mon Jun 18, 2012 10:13 pm

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the chart looks to be inversed head and shoulders, while the right shoulder is about to be formed and closer to the neckline.once formed we should see a slight pull back and continue upward till 260 at least .....the pattern confluense with one the bullish patterns on harmonic price pattern

good luk if you are holding,
i will get in, in few days, i will upload the chart then.......

TAH Basketball

Last edited by traderathome on Mon Jun 18, 2012 10:24 pm; edited 2 times in total

traderathome · 7 Re: Double Bottom Mon Jun 18, 2012 10:15 pm

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chart update will be in HPP thread.....in few days

Whitebull · 8 Re: Double Bottom Mon Jun 18, 2012 11:19 pm

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traderathome wrote:the chart looks to be inversed head and shoulders, while the right shoulder is about to be formed and closer to the neckline.once formed we should see a slight pull back and continue upward till 260 at least .....the pattern confluense with one the bullish patterns on harmonic price pattern

good luk if you are holding,
i will get in, in few days, i will upload the chart then.......

TAH

Dear Friend, We should not forget basics when identifying patterns.Inverse head and shoulder pattern is a bottom.So we should have significant prior down trend.Look at the below long term chart.I can not see a significant down trend.(And do not forget that share splitting also.) So I do not think this is inverse head and shoulder pattern.

There was a such a pattern extending from end of 2008 to the begining of 2009.

bottom - Double Bottom Jkh_511

traderathome · 9 Re: Double Bottom Tue Jun 19, 2012 12:03 am

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but also....the time factor is very important when validating and identifying the chart patterns. your first chart was on the bulls eye spanning last 24 months, which for me imo more effective than looking at you 2008 -2012 charts, thats more years.
any pattern will have high accuracy if the pattern was complete within reasonable time period say one year, and your chart indicated the completion will occur in july.......this year.
for me a significant move downward was complete when it hit new higher low closer to the lower low it made in june 2010.
anyhow you are expecting a move to the upper, and so do i.....enjoy the fun....meet you @ 260, when i offload part of the chunk...... Very Happy

happy hunting
TAH pirat

Redbulls · 10 Re: Double Bottom Tue Jun 19, 2012 12:19 am

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Whitebull wrote:This is the JKH chart for last 24months.

This link also help no?
http://forum.srilankaequity.com/t17432-foreigners-selling-jkh#115324

anjelo · 11 Re: Double Bottom Tue Jun 19, 2012 9:04 am

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traderathome wrote:but also....the time factor is very important when validating and identifying the chart patterns. your first chart was on the bulls eye spanning last 24 months, which for me imo more effective than looking at you 2008 -2012 charts, thats more years.
any pattern will have high accuracy if the pattern was complete within reasonable time period say one year, and your chart indicated the completion will occur in july.......this year.
for me a significant move downward was complete when it hit new higher low closer to the lower low it made in june 2010.
anyhow you are expecting a move to the upper, and so do i.....enjoy the fun....meet you @ 260, when i offload part of the chunk......

happy hunting
TAH

ok okaaaaaaaaaaaaaay analysis t....
if you guys are thinking like that,
who would buy the load at 260?????

traderathome · 12 Re: Double Bottom Tue Jun 19, 2012 10:15 am

traderathome

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anjelo wrote:

traderathome wrote:but also....the time factor is very important when validating and identifying the chart patterns. your first chart was on the bulls eye spanning last 24 months, which for me imo more effective than looking at you 2008 -2012 charts, thats more years.
any pattern will have high accuracy if the pattern was complete within reasonable time period say one year, and your chart indicated the completion will occur in july.......this year.
for me a significant move downward was complete when it hit new higher low closer to the lower low it made in june 2010.
anyhow you are expecting a move to the upper, and so do i.....enjoy the fun....meet you @ 260, when i offload part of the chunk......

happy hunting
TAH

ok okaaaaaaaaaaaaaay analysis t....
if you guys are thinking like that,
who would buy the load at 260?????

sorry to be little rude here....mmmmm you should not be trading......try some other business...
you need to do your homework before trading,cant spoon feed everything....its not for us to think who buys @ what price....

no offence mate.

good luck
TAH