AI
Friday, June 08, 2012 9:53:56 PM
The chart has absolutely not confirmed a double-bottom. The largest and most obvious non-confirmation is the price. Please show where the 2nd trough reached $0.95
There are similarities to the formation, but it is not the formation (another issue is the height of the peak between troughs).
You are on support, but not at the 2nd trough nor within the allowable tolerance.
3-Cycle up shows the hint of an uptrend, but it is to be taken in the context of diminished selling pressure. Either continuation of reduced selling pressure (PVO and MFI) or increase to buying pressure (MFI and ChiOsc) needs to be confirm-ing for the chart to begin to signal "buy" (and yet another issue with reversal formation of double-bottom is that the 2nd trough needs volume [which you have/had] and buying pressure acceleration [which you don't have])
Visually appealing? Yes
Double-Bottom? No
There are similarities to the formation, but it is not the formation (another issue is the height of the peak between troughs).
You are on support, but not at the 2nd trough nor within the allowable tolerance.
3-Cycle up shows the hint of an uptrend, but it is to be taken in the context of diminished selling pressure. Either continuation of reduced selling pressure (PVO and MFI) or increase to buying pressure (MFI and ChiOsc) needs to be confirm-ing for the chart to begin to signal "buy" (and yet another issue with reversal formation of double-bottom is that the 2nd trough needs volume [which you have/had] and buying pressure acceleration [which you don't have])
Visually appealing? Yes
Double-Bottom? No
