Packs: W & M / Double Bottom & Top

W & M / Double Bottom & Top Pack

Search and visualize the Double Bottom and Double Top !

The Double Bottom is a bullish reversal pattern. It's in bearish market that we can see this W configuration appear, this one will mark a shortness of breath of the bearish trend, then a bullish reversal of the trend.

The figure is validated when the stock price breaks out the neckline, the highest point between the two bottoms. The theoretical objective of this configuration is obtained by adding the height of the Double Bottom to the neckline, it is common to see a pullback on the neckline before reaching the objective.

On the exact opposite, the Double Top is a bearish reversal pattern. It's in bullish market that we can see this M configuration appear, this one will mark a shortness of breath of the bullish trend, and then a bearish reversal of the trend.

The figure is validated when the stock price breaks out the neckline, the lowest point between the two tops. The theoretical objective of this configuration is obtained by substracting the height of the Double Top to the neckline, it is common to see a pullback on the neckline before reaching the objective.

Description

The Moving Averages Crossings pack includes :

• W Indicator
• W Screener
• M Indicator
• M Screener

The indicators displays the Double Bottom or Double Top detected by the screener. Different displays are availabe.

The Double Bottom and Double Top screeners scans the market for stocks drawing a W or a M pattern within the last 50 candlesticks.

Results are sorted according to the position of the current stock price relative to the Double Bottom (Top) :

• 0 = stockprice located in the "middle" of the W (M),
• 1 = stockprice is close to the bottoms (tops),
• 2 = stockprice is close to the neckline,
• 3 = ongoing breakout of the neckline.

A general filtering on the daily timeframe is done on the stock price, as well as the exchange's volume. This filtering guarantees the stocks appearing in results are in your liquidity criteria.

Lot of parameters can be adjusted to search only the Double Bottom / Double Top that meet your criteria. All these settings are made without modifying the code, in a very simple way in the "variables" menu of the screener, and in the configuration menu for the indicator.

Adjustable validation criteria :

• Maximum percentage between bottoms (tops),
• W (M) height,
• Maximum distance between actual stock price and bottom (top) / neckline.

Available filters :

• Actual stock price is near the bottoms (tops),
• Actual stock price is near the neckline,
• Actual stock price is breaking out the neck line,
• Bullish (bearish) divergence with RSI on the bottoms (tops),
• Neckline is touching the sma20.

General filter (screeners only) :

• Minimum stock price,
• Minimum average volume,
• Average volume expressed in transaction number or in capital exchanged.

Display Options :

• Arrows on tops / bottoms and neckline,
• M / W's triangles,
• M / W's lines,
• Theoretical objective.

Video user guide (english subtitles available) :

Details of available settings :

Download guide

Characteristics

• Works on all TimeFrames
• ProRealTime V11 and later versions compatible,
• Free ProRealTime (daily closings) compatible,
• Automatic and free updates for life.

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Disclaimer

Our proposed tools (indicators and screeners) are not investment advices but tools allowing everyone to find specific graphic configurations.
Investing in the financial markets involves risks up to and including the total loss of capital.
The user of the proposed tools understands and accepts that the use of these tools is under his sole and entire responsibility. P2C Trading declines all responsibility in the use of the tools and the consequences that would result.