Triple bottom false breakout?
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As a beginning investor I am always learning. Today I learned about a "triple bottom false breakout".
"The rule of thumb here is that if a trader wants to be long, it is advisable to wait for the obvious area of likely sell stops to be taken out first. This technique tends to work best after a long decline, when analyst and trader sentiment is overwhelmingly bearish.
Very often it is only after the longs have been liquidated, after being completely demoralized when the last and most obvious support could not hold, that futures can begin a new up leg. A reliable and powerful technical indicator can take place when a breakout to the downside is quickly followed by a move in the opposite direction. A buy signal is generated when the futures price is able to move above the level where the false sell signal was originally generated. It is often a technical sign of strength when a major chart sell signal fails to follow through on the downside."
"The rule of thumb here is that if a trader wants to be long, it is advisable to wait for the obvious area of likely sell stops to be taken out first. This technique tends to work best after a long decline, when analyst and trader sentiment is overwhelmingly bearish.
Very often it is only after the longs have been liquidated, after being completely demoralized when the last and most obvious support could not hold, that futures can begin a new up leg. A reliable and powerful technical indicator can take place when a breakout to the downside is quickly followed by a move in the opposite direction. A buy signal is generated when the futures price is able to move above the level where the false sell signal was originally generated. It is often a technical sign of strength when a major chart sell signal fails to follow through on the downside."
Note
Would you look at that, TSLA recovered a bit today. Should this patter prove to be true, it will recover for next week and crash again soon, breaking the final support appearing to plummet to $420 PT. But instead it will shoot straight up
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