Price action & Psychology - Triple bottom reversal
Hello !
Key points :
I usually never wait for the breakout when trading double or triple bottoms. I tend to buy the bottom immediately. Therefore, I will use the 4.00 zone as my initial target. If the reversal happens and my target is reached I decide whether I hold or sell based on the current conditions.
Using the S&P500 index as a guide
On my S&P500 chart I have the Williams %R (3) indicator plotted. I noticed that during that market crash, whenever the indicator enters the oversold zone (< -75) the S&P500 tends to bounce back up.
i.ibb.co/QmMqjkX/SP500.png
***Disclaimer : This is not an advice to buy the stock.***
Thanks for reading and if you have suggestions or wanna discuss the idea, just leave a comment, I'll be happy to answer.
Key points :
- Triple bottom pattern (laws of mass psychology, in my opinion a very reliable pattern)
- Support held despite high volume
- Indecision rises even though overall market turmoil ( relative strength )
- Rising volume compared to the previous trading session
I usually never wait for the breakout when trading double or triple bottoms. I tend to buy the bottom immediately. Therefore, I will use the 4.00 zone as my initial target. If the reversal happens and my target is reached I decide whether I hold or sell based on the current conditions.
Using the S&P500 index as a guide
On my S&P500 chart I have the Williams %R (3) indicator plotted. I noticed that during that market crash, whenever the indicator enters the oversold zone (< -75) the S&P500 tends to bounce back up.
i.ibb.co/QmMqjkX/SP500.png
***Disclaimer : This is not an advice to buy the stock.***
Thanks for reading and if you have suggestions or wanna discuss the idea, just leave a comment, I'll be happy to answer.
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