This pattern detector attempts to discover stocks that are nearing or have recently completed a double-bottom. Below is an example screen using this new pattern:
Please note the - (hyphen) in double-bottom, that is required to produce the correct results.
As background, to meet the requirements of this pattern, the following conditions must be met:
Stock is in a recent downtrend
Retracement of more than 10% of the low after the downtrend.
Return to within 3% of the lower resistance
Retest of the upper resistance
Increase of volume on the retest of upper resistance.
Below is a chart demonstrating these qualifications:
Please keep in mind this is a fairly specific implementation of the double-bottom and may yield very few results each day. Additionally, we will continue to analyze the results, so if you have any ideas or suggestions for this pattern, please don't hesitate to drop us a line!
Incomplete double-bottom - A variation of the double-bottom filter, is the incomplete double-bottom. This shows stocks that have a potential for a double-bottom pattern.
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