If you are a trader, the Double Bottom pattern should already have you thinking about several experiences. This pattern often appears when the seller is exhausted. However, there are some essential steps to trading this pattern perfectly. Find out about these steps in the following lines.
Finding the chart pattern after identifying the market phase
It is true that without the chart pattern you cannot trade this double bottom pattern, but there is a very important work that you have to do first. You have the obligation to successfully identify the current market phase. For more understanding, visit the site to find out how to easily identify the market phase. This is the work to be done beforehand and with a lot of caution. Because, if you get the wrong phase, you will miss it. And this is very important because, when the double bottom is reversed, you need a downward trend. And even if, you have a strategy to easily spot the reversal, don't act automatically. You need a normal background and a pattern that must be perfectly tradeable.
Also, the chart pattern is nothing more than the historical precedent. The inversion model then allows you to get price confirmation before any business decision is made. And for a perfect exchange of the model, you need two rounded backgrounds. Remember that a rounded bottom is just the price formation that follows a downtrend.
Allow a slight variation between the bottoms before any purchase
If you want to be perfect, you will always experience great difficulty. In trading, you must suppress perfection in your mind, since the pattern will very rarely be perfect. That's why you can't refuse to be flexible. And it is this flexibility that will allow you to tolerate a slight variation between the two different funds.
However, once you have successfully identified the different characteristics of a normal reversal and market phase you should not act immediately. You have to wait to get confirmation of the change in momentum. You can then finally place a stop-loss. You can then trade with a close stop-loss to avoid losses at the maximum.