Perfect example of DOUBLE BOTTOM With DIVERGENCE

7 Jun 2022

VOLTAS

Double bottom is always a perfect pattern for LONG ENTRY.
But I prefer to add some more factors which increases my probability to achieve the target.

In this analysis tutorial, we will learn that.

* After falling wedge pattern breakdown Stock momentum is exhaust near a good Support.
- Never Entered in ONE SIDED BREAKDOWN or BREAKOUT. Wait for the Next GOOD SUPPORT - RESISTANCE, Because one sided move Creates a Doubt( maybe its a TRAP for a RETAIL TRADER like us).
- ONE SIDED BO-BD can be a FAKE BO-BD ( In Mostly cases )
- And incase, If it's not a Fakeout - Fakedown, But a genuine one and we missed that - DON'T PANIC - Never entered in FOMO because this can spoil our RR.
- THIS STRATEGY IS A SOLUTION FOR ALL THE ABOVE SITUATIONS.

* And at that support( IN BIGGER TIME FRAME) I Found BULLISH DIVERGENCE.
- Divergence is basically a manipulation by a big players.
- In Bullish divergence with the help of some OSCILATTORS we see PRICE IS DECREASING but AVERAGE PRICE or STRENGTH or VOLUME is INCREASING. - {Opposite in BEARISH DIVERGENCE}
- But if there is not any SUPPORT - RESISTANCE - - - - - IGNORE THAT AND NEVER ENTER.
- Because WE FOLLOW ONLY&ONLY PRICE ACTION, Indicators is secondary.
- And basic principle of PRICE ACTION is - NEVER ENTERD WITHOUT A SUPPORT RESTISTANCE ZONE OR TRENDLINE SUPPPORT OR ZONE.

* When this stock Follows all rules of BULLISH DIVERGENCE I took a LONG ENTRY.
- COMMENT if you wants to know all the RULES of DIVERGENCE.

* Now chart pattern shows a signal of UPSIDE MOVE and our Divergence setup gives us a confirmation of that SO I ENTERED and ACHIEVED THE TARGET

I hope this is helpful for beginners and a good revision for a pro players.
DIVYA BIHARI DAS this side.
THANKYOU SO MUCH.

--------- COMMENT -----------
- Your Views
- My Mistakes
- Next Topic
- Anything Relevant