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Double Bottom Patterns

Double Bottom on EURHUF

Double Bottom on EURHUF

Double Bottom on EURHUF is one of the most scholastic examples of this kind of pattern. Also, it is located in a very nice spot: in support.

The premise

EURHUF is an exotic currency pair and I need to say that I love its chart. Therefore, let’s take a look at EURHUF daily chart. As you can see, the EURHUF pairs is in a consolidation stage of an uptrend. And the price just made a classic double bottom in support. If you want to see a double bottom with false breakout in support with higher low you can read this article here.

double-bottom-on-eurhuf
Double bottom on EURHUF

How did I trade the double bottom pattern on EURHUF

This is one of the most easy and beautiful trades that I saw in a long time. So, I just placed my buy stop order slightly above de December 24th 2019 daily candle. Because, this is the highest point of the double bottom pattern. Also it’s the resistance of the double bottom.

The outcome

My buy stop order was activated on January 9th 2020. Certainly, everything was just as expected. Therefore, the price went only up, then it retested the old double bottom resistance. So, after the retest, the price headed only north. I closed my trade manually near the take profit level. Because I didn’t wanted to risk the entire position, and wait for the continuation of the major trend. Also, that would’ve mean to hope for a breakout of the consolidation pattern. And I didn’t want to risk my position. As you can see in the chart, the price made a new high into the consolidation pattern.

the-outcome-of-the-double-bottom-on-eurhuf
The outcome of the double bottom on EURHUF

The conclusion

I think that the best conclusions are made from the failures rather successes. So, the only conclusion that came into my mind is that with patience and perseverance one can truly achieve his or her goals.

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