Chart Analysis ~ Triple Bottom

We have a triple bottom with a classic representation here. The first thing we see if we start chronologically is the range formed between  1.4630-1.4666 from [rectangular #1] to the first breakout attempt.

The signal for a Tradable event may be the second bottom [#2]  which could be an early entry point.

The tricky situation here is this: After having a tradable event: double bottom (#1 and #2 blue rectangular), a setup (the breakout of 1.4666) it is obvious that the retest @ 1.4666 which followed the breakout could have been an entry point !!! But it failed! All to the best some might say because an another entry point formed [blue ellipse #3].

A much clearer and easy to  consider  entry point is definitely @1.4694. (it have a bullish stance after the bottomig previously happened and the obviously change in trend).

You can also approach the chart from the Elliot wave perspective and start counting first wave from the first bottom.

Another observation is that the distance between 1-2 and 2-3 are sensibly equal.

Take a look also of this analysis.  http://stockcharts.com/help/doku.php?id=chart_school:chart_analysis:chart_patterns:triple_bottom_revers

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Posted on June 17, 2010, in Chart Analysis and tagged , , , , , , , , , , . Bookmark the permalink. Leave a comment.

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