The bottom formation is confirmed with rising Accumulation/Distribution and a nice, controlled base at the low. This is evidence of a Dark Pool Buy Zone, aka accumulation zone, where bargain hunting has occurred.
But a bottom formation is a sideways pattern first, before it becomes a sustained uptrend. Resistance overhead is strong, so swing traders should be planning their exit strategies at this time, to get out soon profitably if you took the trade as it moved out of the base. Position traders will have stronger entries with lower risk when bottoms breakout to "complete."
We have a market that is range-bound for most stocks, most of the time, which can be a difficult market for KEEPING profits.
Bottoms provide some of the most lucrative trades, but it's important to follow a set of rules according to your intent for the trade, to get the best results. You can learn more about this at my website.
But a bottom formation is a sideways pattern first, before it becomes a sustained uptrend. Resistance overhead is strong, so swing traders should be planning their exit strategies at this time, to get out soon profitably if you took the trade as it moved out of the base. Position traders will have stronger entries with lower risk when bottoms breakout to "complete."
We have a market that is range-bound for most stocks, most of the time, which can be a difficult market for KEEPING profits.
Bottoms provide some of the most lucrative trades, but it's important to follow a set of rules according to your intent for the trade, to get the best results. You can learn more about this at my website.
Martha Stokes, CMT
www.TechniTrader.Courses
Learn how to use the technical patterns of each market participant for better trade planning.
www.TechniTrader.Courses
Learn how to use the technical patterns of each market participant for better trade planning.