Double and Triple Floors

You must observe that until not surpassing the former maximum, the double floor figure will not be confirmed, in a decreasing tendency, and the same happens for the triple floor.

Interpretation:
When the price reaches a minimum level and then ascends, the most logic interpretation is that the price reached results too low for the market:  there exists more buying forces than that of selling, which makes that prices keep on forward.

The more times that a price reaches a determined floor, and doesn’t pass it, the most probable is that it consists in a returning of the former tendency.

If the double floor has been formed I a long period of time, the market will react within a small movements.

The minimum distance that a price will go after the formation of a double ceiling will be equal to the distance between the more lower and more higher of the valley in the figure.

Rounded Floors and Ceilings
A rounded ceiling or superior saucer is that which is formed at the end of a rising tendency. It’s formed along a convex curve in the forma of a U. On the other hand, a rounded floor or inferior saucer is formed at the end of a dropping tendency when the prices describe a concave curve.

Interpretation: In both cases, the most common interpretation is that when the form of a saucer is completed there is going to be a change of tendency.

Beginner Money Investing Chart Patterns Interpretation Double and Triple Floors Head and Shoulders Triangles Graphics Flags and Pennants Figures