Explosive Bottoming Pattern
The explosive bottoming technical pattern is one of our favorite reversal patterns to trade. We like it so much that I created a video course to teach the strategy in detail.
As I was putting the finishing touches on the explosive bottoming training course, several stocks appearing in our Daily Alert service, including ADPT, soared 20% to 65% within just a few trading days out of this bottoming pattern.
Some of these explosive gains occurred after the stock reached our profit target in a short trade.
And this was with using a tight 3.5% stop-loss below the ideal technical entry point I am about to share in this course covering this reversal pattern. It has a solid risk/reward ratio when done right and a very high rate of success while using a tight stop.
Of course, not all stocks will make a huge move out of this bottoming pattern, but many will. In more volatile markets, we often take most off once the price moves 4% to 15% which usually occurs within a few days.
How to Find Explosive Bottoming Patterns
It takes about 2 to 3 hours for me to teach someone the important details to help them differentiate between a decent setup and a great trading setup using this technique. From there, they can start using it on a simulator and then later transition to a live account.
But this bottoming strategy is much more than identifying a candlestick reversal pattern in a downtrend. That is all too often just catching a falling knife.
With this technique, the chance of success is about 75% when following all the important rules carefully based on our back-testing over approximately 1.5 years including the recent bear market in small caps from mid 2015 to early 2016.
More recently during a market uptrend (the market is in an uptrend more often than not) the success rate was 85% to 90% in December, January and February of 2017 during a recent back-test.
In 2021, we just saw FLWS and W make big moves within 24 hours of reaching the entry point as the market was starting to pull back strongly.
You Need a Trading Plan
Of course, you need to know the important technical rules in the video course to find the best bottoming patterns. When we ignored these rules during the back-testing, the chances of success deteriorated quickly.
Today I want to share with you a large portion of the first video in the training course.
If we get a challenging market in the months ahead, these videos could be very valuable to you and may be one of the best ways to make money trading stocks. Even if you have a full-time job and are only swing trading part-time.
I say this because this technique is very successful during a market that is either more suspect or one that is trending solidly higher. It also takes very little of your time and is much less risky than trading penny stocks.
The video explains more and gets you started on learning this powerful bottoming pattern in today’s market. A favorite reversal pattern I use in my own trading.
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(Please forgive me if this is the 2nd copy of my email you receive. The first one disappeared when I attempted to check out something on another page. I may have inadvertently hit the send button.)
After twice watching your sales video for Explosive Bottoming Patterns, I decided to purchase the material.
However, I was stopped dead in my tracks when I attempted to pay for the service. I do not use Paypal nor do I ever intend to use it again.
I was a Paypal member many years ago the first year it started. At renewal time, some misstep caused them to fail to renew my yearly membership. When I attempted to renew it online, they sent me an unbelievable list of documents they wanted me to secure and submit to prove who I am.
As I already had several credit card accounts that were accepted by Internet merchants, I decided not to renew Paypal.
You did a good job of convincing me to purchase Explosive Bottoming Patterns. I am sorry your site does not accept other credit cards for Explosive Bottoming Patters. But, I doubt that I will ever be willing to supply Paypal all of the documents they requested years ago.
By the way, although Paypal has new owners since my original membership, I am certain they would hit me with the same request for new documents.
Life’s too short to waste time dealing with excessive bureaucratic procedures.
Marion Mills Utemills@aol.com 3/9/2017
Marion,
Good news! You can now pay directly with a credit card when paying for the video courses. That option was always available for the alert services. Some users insist on using Paypal and I know they have improved over the years. However, you now have the option to pay with a credit card without involving paypal at all.
Mr. Neill,
I am intrigued by your ideas and service offerings but would like to share one concern; your history of success has dated back to when stocks were at the start of a remarkable sustained uptrend that has continued to this point. I understand you’ve outperformed the S&P, etc., by a long shot, however, my feeling is that the overall market has a greater chance for downside than up in the near future. If you have any comments on that regard I would welcome the chance to hear from you.
That is an important point and a lot of services ignore this critical consideration. But we have been around for more than a decade and went bearish in the very early stages of nearly all the large market corrections over the past 12 years. This includes during the financial crisis. We are very well versed on all the classic technical signs that have preceded all the large corrections over the past several decades. The Weekly Alert and Daily Alert will keep you updated when we are moving to the sidelines in cash to sidestep a correction. We also tell you when we are going bullish again as we did in March of 2009.