Letters To S&C by Technical Analysis, Inc.
REVISITING DOUBLE BOTTOMS
I enjoy articles most when I learn something, and I learned from Pawel Kosinski’s September 2018 article “Double Bot-toms Revisited.”
I used my double bottom data (3,388 double bottoms found manually in 1,080 stocks, some of which no longer trade, from 1991 to 2018). My results show no performance difference for the bottom-to-bottom price variation or volume, but do show that tall patterns perform substantially better than short ones (using the median height-to-breakout price as the boundary between short and tall) ...