What's a Bottom Pattern?

This link leads to a thumbnail strip of different bottoms and descriptions from different websites:..........  Bottom Patterns
Take your pick... I Like the style described below, but there may be a style that better suits you in the thumbnail strip.

A bottom pattern has a few different attributes, (V .... W along with Falling Wedges and Reverse Head and Shoulders etc, and they may all be a part),  but using a bottom pattern based on the price along with the 50 and 200 day average can filter out a lot of noise.  You can use any average you want, but I prefer these ones as they are traditionally accepted and acted upon.... As with any strategy... bottom picking is best practiced in a bullish broad market uptrend... In the bottom picking pattern you will see the 50 day average converging on the 200 day average (the price may drift in and out of the sweetspot)... stretch your imagination a bit and without drawing it .... you should be able to see the triangle trade developing.... when the price moves into the triangle's apex... it has just entered the sweetspot (between the converging 50 and 200 day average) and we are looking for a 200 day average break, and back fill to the 200 day average, which in most cases portrays 200 day average support and position for super long runs.. a solid pipe line and you maybe voodoo charting.

Looking at the ADX you may or may not see it rising to over 20, (gives some bounce strength ) but should show the +DI and - DI moving under .25 preferebly the 20.... (ranging) indicating oversold in position to move into a trend of unknown direction, however because we are trading in an up market, solid stock and sector, it does have a bullish bias to predicting the breakout trend direction.

Bring in the lower bollinger touch concept (range trading, you may throw in a couple of dare devil trades... not my style) in line with the "Left and right Hand of the Devil study, and you just could be getting ready to smoke.

Bottom Picking EVG.TO

Bottom Picking Variation EVG.TO with this variation is to demonstrate one additional indicator that could be added to the above study... this variation indicator is the very bottom indicator in the study.

Dave GLTA

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