[Jugador]

Anybody trade this strategy? If so, what kind of entry do you use? Anticipate or confirmation, or maybe something else?

[brownsfan019]

I think you'll find that double bottoms/tops (and triple bottoms/tops for that matter) work great on some days and will get slaughtered on other days.

Risk management will be key to make it work and IMO you'll want/need some other confirmation - candle patterns, indicators, confluence of S/R, etc.

[Jugador]

Originally Posted by brownsfan019 »

Risk management will be key to make it work and IMO you'll want/need some other confirmation - candle patterns, indicators, confluence of S/R, etc.

When you say confluence, you mean like a bollinger or keltner being touched?

[wjrusnak]

Originally Posted by brownsfan019 »

I think you'll find that double bottoms/tops (and triple bottoms/tops for that matter) work great on some days and will get slaughtered on other days.

Risk management will be key to make it work and IMO you'll want/need some other confirmation - candle patterns, indicators, confluence of S/R, etc.

Especially since most people know about these things. Anyone watching a chart is going to see it. Really you have to ask "what are traders going to do with this double top/bottom?" Much of the time, these double tops and bottoms are also pushed even further, just enough to shake/stop out someone with a good position. Look for any trouble that price has when trying to move any further above or below the double top or bottom. And of course, be ready if case you're wrong.

[diablo272]

I am not an expert on VSA, but I think that some kind of volume analysis would be useful in this situation, more so than any indicator that I know of.

[brownsfan019]

Originally Posted by Jugador »

When you say confluence, you mean like a bollinger or keltner being touched?

There's so much you could look for... a few ideas:

Touch BB or Keltner
Market Profile areas
Other S/R areas (globex high/low, previous days high/low, etc.)
Candlestick patterns
VSA stuff
Plethora of oscillators - macd, stochastics, etc.

You get the idea.

Basically, just seeing a DB or DT by itself can be a risky setup.

Equally important is entry method, where to place stop and where to exit for profits.

As you can see, quite a bit needs to go into it.

[Jugador]

Originally Posted by brownsfan019 »

There's so much you could look for... a few ideas:

Touch BB or Keltner
Market Profile areas
Other S/R areas (globex high/low, previous days high/low, etc.)
Candlestick patterns
VSA stuff
Plethora of oscillators - macd, stochastics, etc.

You get the idea.

Basically, just seeing a DB or DT by itself can be a risky setup.

Equally important is entry method, where to place stop and where to exit for profits.

As you can see, quite a bit needs to go into it.

Okay, thanks...that should keep me busy for awhile.

[brownsfan019]

Here's a good article from Investopedia.

Scroll down to the middle of this page on stockcharts and they talk about DT/DB w/ Bollingers.