|12/11/2002 9:36:16 AM
We have just introduced a new double-bottom pattern detector. Another result of great user ideas and feedback! This new pattern detector attempts to discover stocks that are nearing or have recently completed a double-bottom. Below is an example screen using this new pattern:
Please note the - (hyphen) in double-bottom, that is required to produce the correct results.
As background, to meet the requirements of this pattern, the following conditions must be met:
Stock is in a recent downtrend
Retracement of more than 10% of the low after the downtrend.
Return to within 3% of the lower resistance
Retest of the upper resistance
Increase of volume on the retest of upper resistance.
Below is a chart demonstrating these qualifications:
Please keep in mind this is a fairly specific implementation of the double-bottom and may yield very few results each day. Additionally, we will continue to analyze the results, so if you have any ideas or suggestions for this pattern, please don't hesitate to drop us a line!
- Ignore gchen
|12/12/2002 11:27:45 PM
The new Double Bottom is a very valuable pattern, but how about a "Potential
Double Bottom" pattern, which show stocks that have dropped to their previous
low level with a potential to bounce. Thank you very much.
- Ignore tomb
|12/18/2002 11:14:31 AM
Great idea about the potential or incomplete double bottom. We have added a new phrase for the double bottom so you can do just that.
Thanks again for the feedback and please let us know what you think!
- Ignore avikroy
|1/4/2003 3:35:01 PM
Very, very useful. How about a similar "double-top" filter. Both complete and incomplete, just like the "double-bottom".
- Ignore ljt9696
|6/5/2003 12:09:18 AM
Yes, particularly like the incomplete double-bottom. As last poster inquired, is there a similar scan for an incomplete double top? Thanks.
- Ignore makeroftrades
|9/9/2003 6:10:27 PM
WHY INCOMPLETE , IS IT A CONIFMRED REVERSAL OFF THE DOUBLE BOTTOM , PLEASE EHLP THANKS
- Ignore EWZuber
|9/10/2003 5:08:22 PM
People want an unconfirmed double bottom, giving them the opportunity to get in at support ( the arrow pointing to, 'retrace to previous low' ). Getting in at resistance can be dangerous, particularly if the market turns red on you like it did today. If one buys near support then the exit signal can be just 1 ~ 2% below support and capitol can be conserved for another day. It also allows for gains up until resistance is tested. If the double bottom pattern never breaks resistance then you have a good cushon below you and can close the position in the money. If it does move higher then you're ahead of the game. JMHO
- Ignore mktmole
|10/29/2003 3:51:07 PM
Can the Double Bottom Scan be further enhanced to a separate Triple Bottom Scan? Thank You.
- Ignore rsingh
|3/27/2004 12:33:25 PM
Can this work with weekly charts or I meant to say can we see this pattern on
a weekly chart
- Ignore newforzero
|7/9/2004 7:17:11 AM
The incomplete double bottom is extremely valuable. A natural for RSI and MACD divergence studies and a great opportunity to get the risk/reward equation right for trade entry. Moderator: I'm just as interested in an incomplete double top filter for exactly the same reason--is it in the works? TIA