How to Spot and Use Double Bottoms

Published on
February 7th, 2019
Topic
Technical Analysis, Trading
Duration
14 minutes
Asset class
Equities

How to Spot and Use Double Bottoms

Technical Trader ·
Featuring Bob Iaccino

Published on: February 7th, 2019 • Duration: 14 minutes • Asset Class: Equities • Topic: Technical Analysis, Trading

Bob Iaccino of Path Trading Partners explains how to properly use double-bottom patterns when trading. He notes key factors to consider, walks through a recent example, and highlights a new potential buy signal on his radar. Filmed on February 5, 2019 in Chicago.

Comments

  • KL
    Ken L.
    13 February 2019 @ 22:36
    I might have missed it after watching the video twice, but did Bob mention where the entry should be? I believe he said "the double bottom" is confirmed only when price moves above the top of the inverted "V", but he also said at the beginning how he got into the WYNN trade near the bottom of the double bottom pattern.
  • SO
    Sercan O.
    9 February 2019 @ 03:39
    It's interesting but he seems to be adding his own rules to double bottom pattern. It would be very useful to see how the risk/reward or probability of success would improve with his rules. I second Thomas Bulkowski on technical patterns. He is probably the only that provides comprehensive data on how patterns perform in real stock trading.
  • AV
    Adam V.
    9 February 2019 @ 02:16
    it would have been good if he covered the differences between bottom types - Adam and Eve bottoms - as they have different outcomes. About 70% of expected move is what I target on setups like the $WYNN example. If you want to learn more, Thomas Bulkowski has some of the best research on patterns.
  • GO
    Greg O.
    8 February 2019 @ 17:59
    25% is not 25 basis points, it is 2500 basis points. I have no idea what technical methodology it is, but I think he meant „if the double bottom falls within 1250 basis points of either side, not 2500” so within 2500 b.points area, looking at what his mouse pointer idicated.
    • GO
      Greg O.
      8 February 2019 @ 18:03
      Scratch everything I said except first sentence. Not wearing my glasses I misread what was on his chart
  • CM
    Carlos M.
    8 February 2019 @ 11:10
    can you consider a wider double bottom with the first one on nov 17 ? maybe 1 year out with a target of 31 ?
  • CT
    Christopher T.
    8 February 2019 @ 04:23
    the platform is called thinkorswim
  • CT
    Christopher T.
    8 February 2019 @ 04:23
    the platform is called thinkorswim
  • F
    Floyd .
    7 February 2019 @ 22:52
    Excellent,understanding the true definition of technical terms AND their proper use is whats valuable. It would be helpful for those using and discussing technical s in their illustrations to identify what charting tool/vendor they are using.
  • LT
    Lucas T.
    7 February 2019 @ 21:57
    I have found that the two levels that you say are your stop loss levels tend to provide a counter trend bounce...that bounce depending on how much momentum there was in the original move away from the second bottom.
  • GG
    Glenn G.
    7 February 2019 @ 20:00
    What software is this?
  • JG
    John G.
    7 February 2019 @ 17:56
    That was very helpful in my process to become a better trader.
  • V!
    Volatimothy !.
    7 February 2019 @ 16:27
    Love this series. Thanks Bob
  • MM
    Mike M.
    7 February 2019 @ 15:48
    very worth while....thank you.
  • KT
    Kay T.
    7 February 2019 @ 11:49
    very succinct and useful lesson on how to look at/trade double bottoms - great series RV should do more of these!

More Episodes