I am still bearish, but this makes me a bit less so. Trends have to change somewhere, and usually show their change with a recognizable pattern. One such pattern is the double bottom base. As described in "How to Make Money in Stocks" by Bill O'Neil, a double bottom requires:
- A 'W' shaped pattern.
- Usually a matched or lower trough in the second part of the W.
The buy point is located on the top right side of the "W" where the stock is coming up after the second leg down, and should be equal in price to the top of the middle peak of the "W"
What do you think out there? Does a double-bottom base need to take place over a longer time period in order to be valid?
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