I see this pattern way too many times in different
financial instruments, but no one ever gave it a name.
It is one of the best patterns in the system I use, it might
actually be the best. I call it a corrective double bottom
because it is a double bottom after a small correction
in an uptrend. Price usually soars after a pattern like this, the
double bottom acts like a launching deck.
I have observed that the opposite, that being a double top
after a small rally in a downtrend doesn't have the same accuracy,
but this thought has no testing behind it, it's just an opinion.
You can see that at 38$ price formed a double bottom, after a very fast correction because of the tensions in Iraq, more specific the increase in oil prices because terrorists seized control of different raffineries in the country. Price retested this level, and went a bit below the previous swing low (that being stop hunting) as you can see in the 4H chart. The two FIs show bullish divergence, and MACD histogram is rising. This is a very usual pattern for Delta. At a point it is going to fail, but until then, it gets the benefit of the doubt. First target at 42.50$, but usually price goes way over the last swing high, look back if you're not convinced. Also, check out my previous chart on Delta, where I outlined previous patterns.
The four hour chart looks even better, and explains better why I think Delta is going to rise
financial instruments, but no one ever gave it a name.
It is one of the best patterns in the system I use, it might
actually be the best. I call it a corrective double bottom
because it is a double bottom after a small correction
in an uptrend. Price usually soars after a pattern like this, the
double bottom acts like a launching deck.
I have observed that the opposite, that being a double top
after a small rally in a downtrend doesn't have the same accuracy,
but this thought has no testing behind it, it's just an opinion.
You can see that at 38$ price formed a double bottom, after a very fast correction because of the tensions in Iraq, more specific the increase in oil prices because terrorists seized control of different raffineries in the country. Price retested this level, and went a bit below the previous swing low (that being stop hunting) as you can see in the 4H chart. The two FIs show bullish divergence, and MACD histogram is rising. This is a very usual pattern for Delta. At a point it is going to fail, but until then, it gets the benefit of the doubt. First target at 42.50$, but usually price goes way over the last swing high, look back if you're not convinced. Also, check out my previous chart on Delta, where I outlined previous patterns.
The four hour chart looks even better, and explains better why I think Delta is going to rise
