Without relying on news or chasing trends, a simple pattern has changed my account's trajectory, and it has now surpassed $700,000.🎏
I have been striving to achieve profitability for approximately three years now. As time went on, one thing became clearer to me.
It is not, in fact, about discovering some brilliant, groundbreaking strategy or technique.
Even the most fundamental strategies can be effective.
As shown in Figure 2, this "double bottom breakout" is a classic bottom reversal pattern. It first experiences a decline, and then forms two close lows at a low level, forming a "W" shape.
The key lies in the "neckline." After the price bottomed out for the second time, it rebounded and tested the previous resistance. The breakout above the neckline confirmed the breakout, indicating that large funds had entered the market, and it was not just a simple rebound.
I usually enter the market after a breakout above the neckline or a pullback to the neckline, which increases my win rate. After the breakout, the bottom of the consolidation turns into an upward trend. The target price can be extended by the vertical distance from the bottom to the neckline. Once the target price is reached, take profits and exit the market.
The advantage of this method is its high success rate, but the disadvantage is that it cannot capture the profits of the entire trend, only the middle part. Although the method is not perfect, it suits me better, as I pursue stability rather than exorbitant profits.