DOUBLE BOTTOM CHART PATTERN: PART 2

THIS IS PART 2 READ PART 1 FIRST 5. Example Calculation Suppose a stock forms a Double Bo om with: o First and second bottoms at ₹150 o Neckline resistance at ₹200 Price Target: o Height of pa ern = ₹200 - ₹150 = ₹50 o Expected move a er breakout = ₹200 + ₹50 = ₹250 Stop-Loss: Placed slightly below ₹200 or around ₹180. 6. Common Mistakes to Avoid Entering before the breakout is confirmed. Assuming a Double Bottom too early—confirmation happens only after the neckline is broken. Ignoring volume: A breakout with low volume may result in a false signal. 7. Variations of Double Bottom Adam & Eve Double Bo om: One bottom is sharp (V-shaped), the other is rounded. Complex Double Bottom: More than two bottoms before breaking out. 8. Why It Works The pattern shows seller exhaustion—sellers try to push the price down twice but fail. When the price breaks above the neckline, it attracts new buyers, leading to a strong rally. thank you for reading