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Registered User
Joined: 3/25/2005
Posts: 864
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Question For Anyone Who Knows: What constitutes a double bottom or a double top? I used to think that the tops or the bottoms in question had to be, at most, within .03 cents of each other. Am I right or wrong on this one?
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Worden Trainer
Joined: 10/1/2004
Posts: 18,819
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Isn't that more a function of the stock's price per share than how close its tops/bottoms are to each other?
We trainers cannot offer opinions on these things. I will move this to the Market Talk forum for you so other community members can offer their thoughts.
- Craig
Here to Help!
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Registered User
Joined: 1/28/2005
Posts: 6,049
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memorableproducts
According to Thomas Bulkowski there are several DB/DT formations.
There is the:
ADAM/ADAM bottom (ADAM is a "V" shape)
ADAM/EVE bottom (EVE is a "U" shape)
EVE/ADAM bottom
EVE/EVE bottom
(the same shapes exits for double tops just inverted)
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Typically in double bottom formations the bottoms
are within 2 to 5% of each other.
Typically they are 3 to 6 weeks apart. ( >8 weeks less reliable)
Typically there is a rally in-between the bottoms of 10% or less.
The last bottom breaking the rally high is the buy signal.
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Typically in double top formations the tops
are within 2 to 6% of each other.
Typically they are 5 to 7 weeks apart. ( >8weeks less reliable)
Typically there is a drop in-between the tops of 10% or less.
The last top breaking the drop low is the sell signal.
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Thanks
diceman
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Registered User
Joined: 12/7/2004
Posts: 393
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Divergence between price and TSV seems to work well for double bottoms. OBV for double tops.
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Worden Trainer
Joined: 10/1/2004
Posts: 18,819
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Here is a post some of you may find interesting
Double top/bottom trend
I found this by searching the forums. You too can search these forums for anything. Watch this short video on how to get the most from these forums: Learn how to use the forums: post a new topic, reply, Search existing topics
- Craig
Here to Help!
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Registered User
Joined: 3/25/2005
Posts: 864
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Thanks for the great input guys!
memorable
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Registered User
Joined: 1/28/2005
Posts: 6,049
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INTC
Looks like its breaking out of a
ADAM/EVE double bottom.
I would feel better if it was the end
of the year.
Instead of SEPT/OCT in front of us.
Thanks
diceman
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Registered User
Joined: 12/8/2004
Posts: 1,301
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QUOTE (diceman) INTC
Looks like its breaking out of a
ADAM/EVE double bottom.
I would feel better if it was the end
of the year.
Instead of SEPT/OCT in front of us.
Thanks
diceman
I noticed that too, and it's doing it at pretty good volume levels. I almost took a nibble today, but then I decided to wait. To me it needs to prove it can make it over about 20.30. If it does I'm gonna play.
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