Wednesday, April 30, 2008

Double Bottom 1 Minute Reversals



19 comments:

Fred said...

This is not a double bottom until price made a HIGHER high.

You abuse of the term.

Stewie said...

hahahaha! That's awesome! Sorry if i "abuse the term." Call it what you want if the "name" is really important to you. For me, it's the outcome that matters Fred.

Bluedog said...

Quit being so abusive Stewie! =P In any case, I like the setups. How about the Brazian stocks today?!

Stewie said...

BD. man those brazilian stocks just exploded today!!! I was trading HES, CHK and ECA but I wish i was in PBR when that explosion took place. Up 10Pts in a matter of minutes. Feel sorry for that dudes that were covering their shorts on that move!

ainkurn said...

nice trading today Stewie. I guess you should call it a "quasi double-bottom" as to not offend anyone. I owned FSLR for 6 points today.

Stewie said...

nahhh! I will still call it a 'double bottom' just to be annoying (:-P)

I saw your FSLR trade, that was so money!!! FSLR and I are not buddies. I hate it and it hates me. That stock is too jumpy for me. definitely lost more $$ than i made on that sucker.

Fred said...

http://www.trending123.com/patterns/double_bottom.html

A double bottom is only complete, however, when prices rise ABOVE the high end of the point that formed the second low.


http://stockcharts.com/school/doku.php?id=chart_school:chart_analysis:chart_patterns:double_bottom

Breaking resistance from the highest point between the troughs completes the double bottom.

HIGHER HIGH.


You are wrong my friend and I will take your money. It's a high risk trade buying at a low. You want to buy on strength. You never know if it's a double bottom until the price makes a higher high.

Fred said...

LOL

SOHU : a double bottom on a lower low. Are you kidding ?

Stewie said...

you certainly did not take my money today or last week for that matter. keep hitting the books pal. make sure to keep shorting these setups, that's what the amateurs are doing and i'll take the opposite trade every time!

Stewie.

Fred said...

You are an amateur if you call this a double bottom.

A great trader accepts when he is wrong and oh yes you are wrong.

Stewie said...

fred. Sounds like you had a rough day at the office, eh? By the way an amateur worries about terminology and a pro who trades his money for a living and makes $$$$! I hope you are not losing sleep over my double bottoms. I'm done with this retarded conversation. If you do not appreciate what you see here, then visit another blog or start your own pal. good luck to you!

Blue said...

Haha Stewie, love your attitude man! You don't let anyone steal your power. You know what the fuck you're doing. You are consitently making money. Anyone who can't learn from you and appreciate that is just jealous and envious.

ainkurn said...

who is this Fred guy? who gives a damn whether it is "technically" a double bottom or not. I bet the guys at stockcharts.com and trending123.com never made a penny off of trading double bottoms, they just write definitions, HAHAHA. it's not how perfect the setup is that matters, its how much money you make from the trade.

Jason Leavitt said...

Stewie...I too could care less about terminology, but there actually is a name for the set up you're trading...

http://www.dacharts.com/2b.htm

Keep raking in those profits.

:) Jason

Stewie said...

hi jason. i am familiar with 2B reversals. love those trades and i do take them when they show up and the conditions are right. Do you have any good tips about how to manage a winning trade? I always find myself in a winning trade and always selling way too soon. I get in by scaling in and i get out all at once? any tips?

Fred said...

I didn't say the trade was bad.

There is psychology behind the double bottom pattern and looks like you don't understand this psychology. You catch falling knife and see double bottom where you want to see a double bottom.

Ok, in this market (bullish) you can buy on pullback but it's not a double bottom until price makes a higher high.

ainkurn said...

but if you wait for a higher high to buy on then you miss half the move. what's the point of that. At the bottom you have a low risk high reward trade. if you wait for the higher high to buy on, then you have to have a wider stop and usually less potential profits. Not really a good trade in my book, no matter the psychology behind it.

Stewie said...

amen ainkurn. that's exactly why i buy on a retest. buy with excellent risk/reward. your stop is a break of the lows. waiting for a higher low requires a looser stop and i am not interested in that. plus i buy near a retest while people who are long are panicing to get out thinking the lows are about to break and late shorts jump on board at the wrong time. perfect recipe for a reversal. i'm there!!

Jason Leavitt said...

Stewie....my biggest weakness is I get out too soon. The only way I've been able to slightly deal with this has been to take a bigger position (I get in all at once) and then take half off. Then I get to satisfy my urge to take profits and still keep a few shares on the table. But for the record, I end of taking the other half at pretty close to the same level as the first half, so in the end, it's not a bad to take profits and move on.

OT - I talked with an accountant in Chicago who only deals with traders. I asked her about the improvement traders make year to year, and she laughed. She said once a trader finds his niche, he trades the same way year after year and makes the same money year after year. Very few can actually trade other methodologies and very few have the ability to size up. The just keep pounding away at the same set ups year after year just like it's a job.

I know what my weakness is (exiting too early), but I'm ok with it. :)

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