T2W Trading Community

B) Double Bottom  -
Not as dynamic as the head and shoulders formation but a good bullish indicator none-the-less. Again though, the ideal is that it is matched by increased volume and minimal or no overhead resistance and that it is read in conjunction with the upward price break of the MA and the turn up of the MA itself.

Double bottoms are far from an unusual occurrence (whereas Head and Shoulders are few and far between) and so one has to be careful and demanding of the surrounding criteria so that one does not end up buying before the uptrend is in evidence.

Brambles Ind.plc chart shows a classic double-bottom formation which preceded the buy of this share in Sept/Oct 2003 –

(click to enlarge)

Head-and-shoulders and double bottoms etc. apart, the pre-requisite is for the three main technical aspects, as described above, to come together at the same time.

Here are three share examples of this ‘triple whammy’ effect plus some additional TA that gives rise to explosive growth and some super profits –

Charter (chtr) –

Charter (chtr)

Ashtead (aht)

Savilles (svs)