Cashbackforextradingindonesia terminology in the double bottom (W bottom) cashbac……" />

The meaning of the double bottom pattern in the foreign exchange market

2023/2/26 8:15:28

foreign exchange broker foreign exchange">Cashbackforextradingindonesia terminology in the double bottom (W bottom) cashback forex indonesia one of the most common terms, this technical pattern is recognized by market participants as the bottom of the bottom pattern important signal but in is in actual operation, we will encounter many problems, such as the formation of a double bottom and then dip again, and effectively break the low point turned into a downward relay pattern, thus causing a Judgment error today we on the double bottom (W bottom) judgment and operating environment for summary and analysis First of all, we need to understand the technical meaning of the graph itself if the bottom of the foreign exchange market formed double bottom pattern, which reflects the market in the first bottoming rebound after the long profit taking again, but the short force is not enough to create a new low both technical operation, but also the meaning of low absorption of chips, that is, in the The first rise in the limited number of chips, in order to obtain a low cheap cost, so again down to buy low  morphology reflects two market implications:   the first meaning is to do more capital strength is limited and not concentrated power, so through repeated testing of market forces to obtain low-cost chips while digesting short market pressure, otherwise the market is likely to form a V-shaped reversal Another technical implication is that the short side of the market pressure is larger, the market rose in the process of encountering greater selling pressure, this time the foreign exchange market did not form a unanimous bearish consensus, so the price had to probe down again for support  Successful double bottom should have two characteristics:   One, from the technical form, the lowest point of the two bottoms are basically the same, the response market twice after the dip There is no further downward push of power, showing the weakening of the short-side forces and the intervention of the long-side forces  Second, the relative enlargement of transactions, this is more obvious in the stock market, not only is the process of rising with transactions, and in the downward drawdown is also significantly enlarged, indicating that there are new funds involved of course, if the drawdown is directly up is a stronger performance with these two basic features, investors will be able to Judgment market trend has basically stabilized, the market is about to start a round of rising market  To note is that many investors often like to use this technical pattern in the market trend down to judge the bottom and predict the future, but in the actual operation to be careful, because W under the break will be transformed into a relay down pattern, when the market will further create a new low trend  Foreign exchange market there is A situation is that the use of this technical pattern when the market trend is upward when the market to start finishing as well as retracement, when the use of W bottom pattern has a higher probability of success, and in the case of downward trend use this pattern to judge the bottom is often wrong so in the specific operation, it is recommended that investors operate with the trend, looking for the trend W bottom, thereby increasing the success rate, rather than counter-trend bottoming