Markert Rebellion

1.CHART PATTERNS.

A. DOUBLE BOTTOM/ W FORMATION.

Very little is needed to make a happy life; it is all within yourself, in your way of thinking……..Michael Marcus.

1.Double bottom: is among of the most chart pattern happen day in day out for centuries right now.

Will be a liar when will say some one created double bottom but what i know is all chart patterns are reflections of human behaviors hope, fear, anger, fomo, fad, etc.

it’s look like loop sided W, often occurs when the general market is choppy and volatile or extended.

Can also set the huge price gains.

$SAMSARA

MIRRORING THE MARKET.

Double bottom : Tend to form when the market is so volatile and choppy that’s reflected on the chart below.

You have one leg down the the stock tries to rally , but hits the resistance and end ups pulling back to form a second leg down.

The stock rebounds more time and it’s finally able to punch through and more higher with heavy volume., above the former resistance finally break the wall.

KEY TRAITS OF W BOTTOM.

1.PRIOR UPTREND: Should be 30% or higher.

2.BASE LENGTH: At least 7 weeks .

The first down week in the base counts as a week.

3.PEAK IN THE MIDDLE OF W:

Should form in upper half of the base.

should be below left side peak

4.UNDERCUT: Bottom of the second leg should be lower than the bottom of the first leg.

5.IDEAL BUY POINT/ PIVOT POINT.

Add 10 cents above the peak in the middle of W.

Buying range ; up to 5% above the ideal buy point.

6.VOLUME ON THE DAY OF BREAKOUT: At least 40%—50% above the average volume.

The breakout typically happens when the overall market has also bounced back to form correction into a new uptrend.

7.SUPPORT AND RESISTANCE.

Double bottoms buying price is calculated by adding 10 cents from w middle, Like in cup with handle and flat base.

Resistance: Peak in the middle of W

SO stock breaking through that resistance on unusual heavy volume reveals institutional investors are aggressively buying shares./ scooping shares.

8.SHAKEOUTS.

The same as applied in the cup with handle , the second leg of double bottom undercut the first leg , that’s get rid of the weaker holders leaving committed investors who create the new up trending run.

NOTE: NEXT WEEK WILL STUDY IN DETAILS ABOUT CUP WITH HANDLE AND EXAMPLES OF 10 STOCKS BROKE IT ON HEAVY VOLUME.

SEE YOU NEXT WEEK.