double bottom is a charting pattern used in technical analysis. It describes the drop of a COIN, a rebound, another drop to the same or similar level as the original drop, and finally another rebound. The double bottom looks like the letter "W". The twice-touched low is considered a support level.
Once the closing price is in the second rebound and is approaching the high of the first rebound of the pattern, and a noticeable expansion in volume is present coupled with fundamentals that indicate market conditions that are conducive to a reversal, a long position should be taken at the price level of the high of the first rebound, with a stop loss at the second low in the pattern.
A profit target should be taken at two times the stop loss amount above the entry price.
A position should be take only when price break out of the neckline of the W formation and closes above it
Technicals suggest that price has completed the return to high of the W formation.
STOP LOSS: 0.00000798sats
Disclaimer: This is for educational purposes,it is not intended as a financial advice.
The analyst won't be responsible for a loss of fund. Trader should be able to manage risk.