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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: ggersh who wrote (19682)	8/4/2017 3:59:22 PM
From: The Ox	Read Replies (2) \| Respond to of 33421

Double, Triple or Multiple Bottoms (or Tops) are simply areas where the trade dynamics are often easy to define. Recognizable patterns, that's all. Whether or not they play out,exactly as one may predict is unique to each situation. For me, the pattern may make me more comfortable in setting in my trade parameters, is all. Breakthroughs to downside should be respected and if one had gone long near/at the bottom, then you should likely stop yourself out of the trade (depending on your risk tolerance and what % you might put below the bottom area to prevent getting whiplashed). In essence, the same holds true for tops. There no reason they have to be THE TOP and are often an area where once it breaks upward, can be a high % place to go long. Here's a chart I looked at last night and reposted today, that shows a fairly consistent pattern. Will the pattern continue and reverse up or will this one break down? I don't own a crystal ball, that's for sure. Even saying this, if this was a company you wanted to own, then the odds are probably greater waiting for a return to the bottom of the channel before legging into a position. What do you see in the RIGL chart? A stock breaking down or finding potential support? The same holds true of the USD pattern. Knowing the previous low doesn't tell us where the bottom may play out this time!