3SOF

Hi,

I would like to show you one of my favorite strategy : Double bottom
Look at OWENQ between Febrary (first bottom) and april 2005 (double bottom)...

Technically we have a double bottom...It's perfect :

1. Candelstick : On first bottom we can see a Doji and a Bullish Engulfing pattern appears. On second bottom we have a Piercing Line pattern. => Bullish Reversal Patterns

2. Volume and Time : Volume was very low between the two points and the formation has been in place during two months..

3. Divergence in MACD and RSI : RSI is lower in first bottom than in second bottom and MACD is lower in first bottom than in second bottom. RSI < 30 in first bottom and RSI > 31 in second bottom.

Buy at 2.000...Price rises 5.000 in 7 trading sessions !!!! 150% in 7 days !!!!
Target = When RSI > 70 and STOP loss if RSI crosses under 30

Look at MSPD...Between May and july 2005...

100% Gains in 3 months !!!

Look at EYII...There is a double bottom in this chart. Any idea ???? ::)
Response is on the word document

Oupss..Here is the doc

I applaud you seb spa for sharing you're knowledge. I'll be watching for double bottoms now that I'm aware of it. I'm going to post a system I use to. It works good for me. I call it mom/ma. Moving on momentum/moving average and I like to use 28 days for the moving average. I found it on stockcharts.com and it is a very reliable and simple way to use. I'm going to start a new thread for it so less experiance traders will see it all when they read it. It will take me a few days to complete but I think it may be very useful to some.
Good luck trading  :)

Thanks Wrangler.... ;D I am waiting for your post. I am curious !

Here is another Double bottom that i have take position. Today i close all of my positions....More 50% of gains in less than one month !!!

TRFDF

An another stock...LUME -> > 50% gains in few time !

Cf. Charts and Document WORD

An another...LAND on 05/2004

Look at charts...

Here are charts ! ;D

seb spa look at chart for MCZ. Would you consider that a double bottom. The one on the right side bottomed out higher than the left one but look at the formation of both and both had the same kind of spike when it ran up.
Goodluck trading :)

Hi Wrangler and good afternoon !

I applaud you  ;D ;D! Indeed, it is a double bottom ! and it is perfect....Like that i try to catch !Great find...

Look at doc word

Wrangler on the same chart you have an another Explosive Double bottom..Between the end of july and the end of september in 2004...

38.2% of gains in less than one month !
Buy at 0.470. Sold at 0.650

seb spa
There is a tread started on this MCZ by laonda. I bought this stock back when it was 1.00.   icontinued the thread by laonda when price begin to show upward trend. Thanks for the applaud I'll return the applaud. Look at stock so far today and it's just going to keep going higher.

Great  ;) 1.250 is the first target.
Good trade

I'm holding and hoping for 1.50. That will give me a 50% return but if I see it begin to fall back before it gets there then I'll consider selling. Keep me posted with you're TA, would appreciate it.

An another perfect double bottom -> TLPE in the mid of 2005...

274% gains in 8 days ! Woaw !!!!

Look at doc word

An another stock with a perfect double bottom...
LEND between may-july 2004...46% gains in less than 2 months

ANOTHER PICK...MIVT : 127% gains in 2.5 months..Look at doc WORD

Another Pick...QSC -> 100% gains in less than one month !!!

My favorite...The better for the end ! One of my pick....I am very proud..

GZFX in september-october 2005. More 300% gains in 5 dyas !!!! ;D ;D

Wrangler,

about MCZ...I would like to help you but i don't want you make bad decisions  :-\

What we can see it is a correction...We are actually in the second wave of eliott wave theory...So we can have a lot of hope concerning MCZ...The third wave will probably arrive ! But MCZ can navigate between 0.750 and 1.000 (good resistance)...We don't know how time...

Good trade. ;)

Thanks seb spa for the info.
My plans is to hold till it get's 50% return which will be 1.50 and if it doesn't before earnings release around March then I'll look to exit at a differant range. As long as it get's above 1.00 I'll be happy because that will take me out of negative territory.
Goodluck trading

Hi seb spa
Found two possible double bottoms,what you think

Wow, this is pretty cool! ;D Now we just need to find potential plays. Oh and maybe some counter-examples to analyze. ;)

Hi Wrangler...

Thanks for your posts

Great find...For me they are two possible double bottom but they are not perfect...But you can play them. Very few risk : This is always the target !!!!

Good trades

So what is a "perfect" double bottom? What should we look for?

Hi seb spa
Beginning to see the possibilities on double bottoms and what is a perfect double bottom. Is a perfect double bottom when both bottoms hit at the same place on the bottom and also noticed that after the second bottom is there it begins to show an upward trend.
If I was to choose between the two I would choose PPHM and reason is, the MACD line has crossed upward above the moving average line which is a buy signal and shows it's moving into bullish upward trend.
I'll have to keep an eye out for double bottoms. Looks like a good trading system.
I applaud you for this system :)

Hi Irod and Wrangler,
and i applaud you Wrangler for your research and your last post ! I hope that it can help Irod..

Irod, i would like to add further informations about my last post..When i said "perfect" i said in fact "For ME it is not a perfect double bottom". You known i believe each trader is different and with the same tactic or strategy two traders will find different results. Trading can be mechanic but there is a place of judgement, art, interpretation and feeling. That is why i like market. Trading is between chance and scientific discipline. With experience chance is less and less important and art become more and more impotant. Moreover, each trader has his own target = some like day-trading, others like swing-trading, some prefers a conservative strategy and others an aggressive strategy...With this topic i would to show a good strategy..At each trader to suit it.

For me, a "perfect double bottom" is an union between three composants :
  - Traditionnal graphic analyst
  - Indicators
  - Candlestick Charting Techniques

Traditionnal graphic analyst :
  - I include in this category "Chart patterns". Double bottom is one of these chart patterns. You can find support and resistance, trading ranges, head and shoulders, double tops and double bottoms, triple tops and triple bottoms, flags and pennants, triangles and wedges, cup and handle...Some words about double bottom :

Double bottoms are also treacherous to trade, in part because of the similarity to triple bottoms and trading ranges.
The double bottom is a major reversal pattern that forms after an extended downtrend. As its name implies, the pattern is made up of two consecutive troughs that are roughly equal, with a moderate peak in between.
The target is measured from the lowest trough to the level of the intervening peak. It is then projected up from the break out above the resistance line.

Indicators :
There is a lot of indicators...
Most indicators highlight a particular aspect of price or volume behavior. Newcomers often attach mystical significance to their favorite indicators but none are infallible. When using indicators:
Select a small number of indicators (2 or 3) and use them to confirm signals from each other;
Study their behavior until you know them well. Indicators are like a carpenter's tools - skilled use can produce excellent results, unskilled use may lead to injury.
Select indicators that complement each other and are not based on the same data. For example: three indicators based on closing price will tend to confirm each other; while indicators based respectively on closing price, volume and trading range will often conflict and are therefore more reliable when they do confirm each other.

Indicator Categories :
Trend indicators
Momentum indicators
Volume indicators = very important : must confirm the new trend...
Volatility indicators

For me i use essentially MACD and RSI and i use them when a divergence appeared with price but you can try ohters indicators...

Candlestick Charting Techniques :

Candlesticks contain the same data as a normal bar chart but highlight the relationship between opening and closing prices. The narrow stick represents the range of prices traded during the period (high to low) while the broad mid-section represents the opening and closing prices for the period.

Two big category : (cf. stock charts for more informations)

Bullish Reversal Patterns:
Bullish Engulfing - Stocks that have a Bullish Engulfing pattern at the end of their daily chart.
Piercing Line - Stocks that have a Piercing Line pattern at the end of their daily chart.
Morning Star - Stocks that have a Morning Star pattern at the end of their daily chart.
Bullish Harami - Stocks that have a Bullish Harami pattern at the end of their daily chart.
Three White Soldiers - Stocks that have a Three White Soldiers pattern at the end of their daily chart.
 
Bearish Reversal Patterns:
Bearish Engulfing - Stocks that have a Bearish Engulfing pattern at the end of their daily chart.
Dark Cloud Cover - Stocks that have a Dark Cloud Cover pattern at the end of their daily chart.
Evening Star - Stocks that have a Evening Star pattern at the end of their daily chart.
Bearish Harami - Stocks that have a Bearish Harami pattern at the end of their daily chart.
Three Black Crows - Stocks that have a Three Black Crows pattern at the end of their daily chart.
Rising Three Methods - Stocks that have a Rising Three Methods pattern at the end of their daily chart.
Falling Three Methods - Stocks that have a Falling Three Methods pattern at the end of their daily chart.

I use Bullish Reversal Patterns for find "perfect" double bottom

My strategy :
I am very aggressive...I try to buy at the bottom when Traditionnal graphic analyst, Indicators  and Candlestick Charting Techniques work together. Why ? Very few risk...Stop loss = low of the second bottom. I need a good ratio : more than 1/3 (between profit and loss). With this technic and being patient, you can win more than 70% of time for a low risk !!! That's It is my favourite strategy !

I hope i was enough clear...Good finds and good trades... ;)














 

Wow seb, thanks for the crash course! Your outlook and strategies are very valuable and I'm loving them. I will keep following your posts. Hopefully you can keep posting your potential plays and/or comments so we can study them and keep learning with you. Thanks for taking the time for this! Lots of applauds! :)

Irod,

have a look on YPNT...A possible double bottom ?  ;)

Hi,

an another good find...OWENQ : have a look on word document. "Perfect" double bottom...
150% in one week !!!

I would like to show you how we must be careful with this strategy...I repeat but it is more important to be patient than make big mistakes...LGF is a good example...

1.
yesterday a doji is formed...And it seems to be a possible double bottom.
Candelstick : on the first bottom we can see an hammer and on the second bottom a doji appeared
Volume : low between the two bottoms
Chart pattern : Lows of firt bottom and second bottom are almost similar and two months separate the two bottoms
Indicators : no divergence !! So i don't take positions...

2. Bewteen july and august a double seems to be formed
But we can see that RSI never attained an overbought situation (RSI > 70)...
It is time for me to explain a strategy to play for avoid to loss money and take sometimes profit.
You sold half of your positions when price reaches the peak of the double bottom and you hope that RSI will reach an overbought situation. By investing like that you could take profit despite bad scenario..

Hi,

There is two days i bought EGAM at 0.310...Good candidate for possible double bottom and for now i am not disappointed !!! good profit yesterday...

Nice! ;D

I'll keep an eye on YPNT. Applaud!

Very high volume today, but no movement. Interesting.

Hey guys, with regards to LGF i have been keeping my eye on this one for a while. While I am not particularly good at TA i have noticed that this thing pretty much jumps every time they have a huge opening weekend. Just look what happened the week after both SAW movies came out and a couple other of their bigger movies. Theyve got two coming out in the next couple of months, Hostel, a horror movie with some buzz built and Madeas family reunion, a follow up to that one hit last year. if both of these are as successful as anticipated you can almost bank a 10-20% jump the following week. You could probably play this one 5 times a year for a quick 10% each time. I've done it a couple times already.
Bob

Is the chart of LNUX qualified for double bottom?   Thanks for your comments.

Great pnguyen65200 ! ;D

This is effectively a double bottom. Time of duration : 6-7months...Personaly, i prefer find possible double bottom in 2-3 months max but you are right : a valid double bottom..Same lows, divergence on RSI and MACD and dojis, volume, all signs are green.

;D

hi,

you will find my analysis about NMGC. 100% in less than 1 month !!!

Hi,

i have bought some shares of ANCC when a doji appeared...I played for a double bottom and perhaps it is !!! ;D

yesterday price close at 1.150
First target at 1.75 (peak of double bottom)
Theoric target at 2.50-2.55

news :
  Quotes & News:
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Aurora Gold Corporation Announces That It Has Entered Into Option Agreements Over the Ouro Mil and the Sao Domingo Projects in the Tapajos Gold Province, Para State, Brazil and Has Commenced Initial Exploration Programs
11/8/2005 4:17:19 PM
VANCOUVER, BC, Nov 08, 2005 (MARKET WIRE via COMTEX) -- AURORA GOLD CORPORATION (the "Company") (ARXG) announces that the company has entered into option agreements over the Ouro Mil and Sao Domingo project areas and has commenced reconnaissance exploration programs. The Ouro Mil and Sao Domingo projects are located in the rich and largely unexplored Tapajos gold province in Para State, Brazil. The Ouro Mil project covers an area of approximately 10,000 hectares and the Sao Domingo project covers an area of approximately 5,000 hectares. ...

An another interested stock...CHINA >40% gains between april and june 2005.

An another example on MBEU...100% gains in 2 months

Nice! >:D

Thanks Irod... :)

Hi,

DHF -> double bottom...

Few gains :-\ but...

An another example :
HSKA

Hi,

What are you thinking about BIPH ? Double bottom formation ?  :)

Why i play BIPH ?

Potential gains : 48.8% (1.68 -> 2.50)
Potential loss : 12% (1.68 -> 1.50)

Ratio : 48.8 / 12 = 4...Good ratio (min. > 3)  ;D

If i am wrong i am waiting that an another downtrend will end to buy another shares...

An another candidate : ECR

Buy at 2.440
target at 4.20
stop loss at 2.200
Ratio : 75 / 10.9 = 6.88...Excellent ratio (> 5)

Technicals :
Double bottom
Candelstick : Bullish Engulfing Pattern...

Hi,

an another candidate...EMED

Buy at 0.550
target at 1.000
stop loss at about 0.450
Ratio = 81.88 /22.22 = 3.68...Good ratio

Technicals :
Double bottom

possible doublebottom

Great find Wrangler.... ;)

Hi,

an another candidate :
BUKS

Buy at 0.272
target at 0.4590
stop loss at 0.2590
Ratio : 68.75 / 5 = 13.75 !!!! Excellent ! :o

Hi,

an another example of the power of this strategy : TLPE -> 100% gains in 2 weeks !!!

Why i do not have buy shares of NWKI ? Not enough divergence on MACD...

there is double bottom coming @ our EYII

isnt?
i dont know how to calculate these ratios
and to post the chart  ???

Hi,

Yes a possible double bottom is preparing and if we see chart of EYII we can note that 0.025 is also a good support. We have 2 double bottoms !!!! 1. May-july 2005 to today 2. november-december 2005. Good new for us...Few risk to be wrong !

But wait a little before buying shares...We need Confirmation .

To post your charts, have a look at these topics :(very clear)
http://www.3stocksonfire.org/trading/index.php?topic=3962.0

Ratio ? Can you explain me what you don't understand ?

Good trades  ;)

hi

about these ratios
for example with BUKS:

Buy at 0.272
target at 0.4590
stop loss at 0.2590
Ratio : 68.75 / 5 = 13.75 !!!!

where does this 68.75 and 5 come from, little confusion...

but seems to be a powerful tool!
Do you recommend some books about TA? Just to get a practical xmasgift  ;)

greetingz
joozt

Hi Joozt,

about ratios :
Example :
Buy at 1.000
target at 1.300
stop loss at 0.900
Ratio = Potential gains (in %) / Risk (in %) = ((((target * 100) / buy)) - 100) / (100 - (stop loss  * 100) / buy) = 30(%) / 10% = 3...For 1 dollar in market i can gain 0.3 dollars or loss 0.10 dollars. The ratio Reward / Risk > 1 -> in our Favour..More the ratio is higher more transactions are in our favour...
I hope i was clear..

Concerning books : Forget them for now...You have great sites where you can find basic informations about TA. I recommend : Stockcharts.com or Incrediblecharts.com or Investopedia.com...


Have a good day :)

EMED at 3 years :

Hey Sebfr, Looks like Bany is setting up.  Just waiting for confirmation?

Thanks!

I bought Shares of EDNE friday's open. Possible double bottom ? We will see...
Target at 3.8-3.9
Stop at 1.900

Hi OneGreater and great find...I applaud you ! ;D Today's confirmation ??? We will see at the end of session..

Look at EVSC...Double bottom ?

Have a look on GNVC :

An another example : RNO  :D

Hey Sebfr, great thread, thanks.

Here's ANLY as a Double bottom candidate.

Have a great day

uc.

Quote from: usedcasting on December 19, 2005, 02:01:40 PM
Hey Sebfr, great thread, thanks.

Here's ANLY as a Double bottom candidate.

Have a great day

uc.

After spending a week in Vegas and way too much money, all I see when I close my eyes at night are ... double tops.

But here are the bottoms I'm looking at (anytime): http://www.trade-ideas.com/SingleAlertType/GDBOT/Double_bottom.html

NGEN nearly hit it's 52 week low today.  This one we'll have to watch for a double bottom reversal.  It's nearing the apex of the wedge and a break to the upside is nearing.  Also a bull flag set-up is appearing.  Even though NGEN is not being completely capitulated, which I love to see before a reversal,  it has been in a strong downtrend for the past week.  Watch closely this week.  In this kind of trecherous market, I think falling wedge reversals will do well.

Very good find kslifka !

I applaud you... ;D ;D

BUKS : Bullish engulshing and white marabozu !

Hi,

CBAI a very good candidate (news also are great !)...
Target at about 0.320

An another example : WWAT...80% gains in two weeks..

P 2005-12-19 2005-12-20 16:45:03 MEMRY CORP MRY SNAPE EDWIN Director 30,300 $1.65 $49,995.00 34,738 View
P 2005-12-19 2005-12-20 16:39:37 MEMRY CORP MRY BELCHER ROBERT P CFO, Secretary & Treasurer
Director 10,000 $1.64 $16,400.00 55,000 View
P 2005-12-19 2005-12-20 16:31:13 MEMRY CORP MRY KRUSEN W ANDREW JR Director 36,619 $1.657 $60,685.16 602,000 View

After adding the above post on MRY I decided to take a loss on a few stocks and buy MRY @1.76. Liked the double bottom and showing upward trend on MACD with recent insider buying makes this one I like. Willing to take loss on others and hope for gain on this one to make up for loss and a profit

Wow sebfr
I'm going to keep eye out for double bottoms. As I stated above I Bought MRY today @1.75 and look where it is now. It also had more insider buying today.
P 2005-12-21 2005-12-21 14:50:23 MEMRY CORP MRY DE BEAUMONT MICHEL Director 10,000 $1.75 $17,500.00 177,700 View

Hi wrangler,

Ia m very busy in this moment but i applaud you..Great find... ;D Just be careful : we have also a double top and a "head and shoulder" at 2 years...Need a good volume on triangle breakout..

Thanks sebfr for the info. I don't expect it to go straight up. Most stocks will have pull backs while they rise. Will keep my eyes open for the reversal if it happens. I use the buy and sell signals on the MACD and plan to hold till I see a sell signal is about to happen.
Goodluck trading :) here's a chart update for MRY

HBSL - a candidate ?

http://www.3stocksonfire.org/trading/index.php?topic=4109.0

hI,

PCLI...

Buy at 0.150
stop loss at 0.1350
target at 0.55-0.60
Ratio : 366 / 12 = 30.5 !!! Very good...

Hi,

ANCC -> long term...

Buy at 1.040
stop at 0.90
target at 2.450
ratio = 135.5 / 15.5 = 8.74...Great

Technicals :
Double bottom (time frame = > 6 months)

Hi,

Have a look on ARGY...

Strategy :
Buy at 0.105
stop loss at 0.970
target at 0.22
ratio = 110 / 11 = 10...Excellent

ACKHQ is a good candidate...

Startegy :
buy at 1.580
first target at 1.90
second target at 2.25
stop loss at 1.490
ratio = 42 / 6 = 7...Very good

Hi,

an another candidate : ALTI...

Startegy :
Buy at 2.10
first target at 2.60
second target at 3.10
stop loss at 1.980
ratio = 48 / 6 = 8...Very good...

wHAT ARE YOU thinking about NNBP ??

Hi,

an another candidate : PFMS...

Strategy :
buy at 0.025
first target at 0.070
second target at 0.120
stop loss at 0.0170
ratio = 480 / 47 = > 10...Very good..

An another candidate : YAKC..

Strategy :
buy at 3.090
first target at 3.70
second target at 4.30-4.40
stop loss at 2.900
ratio = 39 / 7 = 5.57...Very good

Three news candidate for possible double bottom today...

CGHI

DPAC

UDTT

Hi,

an another example with BVEW...+43% in 2 months !

hI,

an another good example : PTQM -> 100% in 1 month ! :)

Hi,

Three stocks to watch today :

ATUX

ECR

TGEN

An another candidate...ABDE

Hi,
ALLP -> an another candidate...

Hi sebfr
Look at this double bottom on INSN do you think it's on the way back up. MACD is showing that it may be on an upward trend.

Hi wrangler,

a good play if you have boght this stock when doji appeared...The peak of double bottom is reached 4 days ago...Ok for the first target (sold 50% of your positions) and we will see for the second target at 0.0018-0.0020... ;)

Hi,

CHID is a perfect candidate !  :D

An another good example -> ATA ! +80% in less than 1 month

STEM and NGEN appear to be setting up for perfect double bottoms and trend reversals.  Included in the the technicals, I use Bollinger Bands. 

Here is the set up on both STEM and NGEN.

1. Notice how the first low breaks the Lower Bollinger Band.
2. The second low(double bottom) doesn't break the Lower Bollinger Band.
3. Confirmation occurs when price action breaks a downtrend and remains above the midway  point (the dotted line) between the upper and lower Bollinger Bands.

These are not always stocks on fire but stocks that are reversing a trend...These are for those that like to find bottoms and trend reversals...it is a good tool with low downside risk and for those that like peace of mind when buying stocks.

Hi kslifka,

Great job...Applaud. We can find these informations in the book of John Bollinger ("Bollinger on Bollinger Bands").

When i use these strategy (perfect double bottom) i use also Bollinger bands for my first target. I have two target : first and second. First correspond to the peak of double bottom. But i use also upper bands as target....

Good trades

MRY, see chart attachment, may be an excellant play
Goodluck to all :)

Hi,

CHID was perfect ! i have closed my positions at about 0.60. Buy at about 0.40 so 50%gains !

;D

The best of the best ABDE -> buy at 0.050 and close at 0.75 so

+1500% in 11 days !!!!!!!!!!!!!!!!! My favorite...

;D ;D ;D ;D

Where you been sebfr. Been watching for some of you're double bottoms.
Applauds on you're last two

Quote from: sebfr on December 24, 2005, 07:50:46 AM
Hi,

ANCC -> long term...

Buy at 1.040
stop at 0.90
target at 2.450
ratio = 135.5 / 15.5 = 8.74...Great

Technicals :
Double bottom (time frame = > 6 months)

Bought ANCC today @.9799

ANCC : still showing a good uptrend

Look at UNTD