Tackle Today: W is for Winners | Tackle Trading: The #1 rated trading education platform

Tackle Today: W is for Winners

Tackle Today W is for Winners

«When Bulls Return.»

Traders,

Now that we’ve got an idea of the most common bottoming patterns, let’s take a closer look at the double bottom. It looks like the letter “W” and signals a shift in power from bears to bulls. Let’s break it down.

Downtrends are comprised of lower pivot lows. To form a lower pivot low requires breaking below the previous trough. It’s a feat only accomplished when bears are pressing their advantage and bulls are unwilling or unable to defend the old floor. 

But what happens if prices hold the prior low? An equal pivot low forms. It signals a failure of sellers to continue the downtrend. It also signals that downside momentum has stalled, that bulls are putting up a fight at support and are winning. Not all double bottoms result in a massive uptrend. Some simply reveal a momentum shift from down to sideways.

For the downtrend to fully reverse requires a break of resistance. Ultimately, that is what completes and confirms the W formation.


🛑 Upcoming Webinar › Technical Analysis 101: The Art of the Reversal with Coach Matt Justice | April 11th at 8:30 PM EST on YouTube

Join Tackle Trading on the next Technical Analysis webinar where Coach Matt Justice is going to take a deep dive into how price trends reverse. It’s called The Art of the Reversal. You will learn everything you need to know about how to spot, analyze, and trade the various reversal patterns that end (and begin!) trends.

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Join the coaches in this live lounge, ask questions, discuss ideas or just sit back and listen to veteran traders discuss market conditions.

Cash Flow Club Replay

If you missed last night’s episode when Coach Gino Poore talked about Top-Down approach Using Implied Volatility or would like to watch it again, check it out here.

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The Halftime Report starts at 12:30 EST and covers what news is driving the market, chart analysis from the movers and shakers of the day, and fun in a way that only Matt and Tim can deliver.


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