QAN makes higher double bottom | Gary Glover | Finance News Network

QAN makes higher double bottom

by Gary Glover

I am generally not a fan of the double top or double bottom formation because its has such a high faliure rate.  If you have read Thomas Bulkowski's - "Enclyopedia of Chart Patterns", you'll know exactly what I mean.
If we make a small adjustment to the rule, only sell lower double tops and only buy higher double bottoms, our success rate is generally much higher.  In this case Qantas has made a new low in late 2013 and now we appear to have a 1st higher low in place and now a retest of that higher low.  (referred to as higher double bottom).
Our success rate is much higher and our stop level is obviously at a tight level also.  So low risk high reward trading opportunities are generally viewed favoubly by traders as your generally risking less with a tighter stop.  A break below the February  low would be a negative sign.  A strong week up with strong committed volume would be ideal for the bulls.

Disclaimer

Gary Glover is an Authorised Representative (Rep No. 259215) of Novus Capital Limited ("Novus"). Novus is a holder of Australian Financial Services Licence No 238 168. Novus, its directors, officers, associates and employees each declare that they, from time to time, may hold interests in financial products and/or earn brokerage, commission, fees or other benefits from financial products mentioned in this e-mail or attached documents. Unless specifically stated within this page or an attached document, any information communicated by this e-mail constitutes unsolicited general financial product advice which has been compiled without regard to any investor's individual objectives, financial situation or needs. It is not specific advice for any particular investor. Before making any decision about the information provided, you need to consider the appropriateness of this information having regard to your individual objectives, financial situation and needs and consult your adviser. Any indicative information and assumptions used here are summarised and also may change without notice to you, particularly if based on past performance or relate to a future matter.