![]() ![]() Look at your triple bottom and determine whether bottom 3 is above, equal to, or below bottom 2. The figure shows an example of a breakout day gap from a diamond chart pattern. If price has not broken out yet, then assume a gap will not occur. Use the breakout day to see if price gapped from the prior day. GapsĪ gap occurs when yesterday's high is below today's low (bull gap) or yesterday's low is above today's high. This pothole pattern holding a diamond bottom after a flat base. Many chart patterns appear at a price just below the base, like a pothole in a road. Flat bases are rare but when they do occur, they can lead to powerful rallies. ![]() Price bounces between the upper and lower boundaries. Look for a price area in which the stock touches the same value multiple times over several weeks or months, often ![]() If you know what a rectangle chart pattern looks like, then you know what a flat base is. Chart patterns with high breakout day volume tend to perform better than Pattern with the 3 month average volume level. $ $ $ Breakout Day Volume Breakout day volume is a comparison of volume on the day price breaks out of the chart ![]()
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