The advantage of the fishing system is the double-bottom model, in which the second bottom cannot be broken below the first. This means that the sellers have weakened (could not break the bottom first) and the bulls are entering the market more. So basically we will have a W-shaped model as follows:

Example 1:

Example 2:

We see the bottom 2 is not very clear, but still satisfies the condition to become a W-shaped model

Example 3:

We already know how to recognize the pattern, now it's time to trade it.

Seabed Fishing System - Set up a trading

Step 1: find a pattern of two bottoms with a second bottom that is clearly higher than bottom 1:

These two troughs that can be close to each other can also be far apart, but they must be Two clear lows, and the 2nd bottom is about 5-20% higher than the 1st bottom. Sometimes there is a W pattern with the second bottom 20% higher than the bottom 1, which is too high and then the market has risen too far and will quickly lose the upside momentum, it is too late to enter the order.

Step 2: Measure the height of the model

The distance between A to C is the model height, which can be considered 75-100% as the price target. Combine this calculation with overhead resistances and price action, a candlestick pattern for profit-taking.

Step 3: Place an order

But as soon as a bar breaks and closes above C (Buy at close).

Stop loss at bottom B (recommended)

Take profit at target.

Seabed Fishing System - Example

Example 4:

Buy as soon as there is the upper closing candlestick (at C), stop loss at bottom B, take profit at 100% height of the pattern (distance A to C), we can take profit right at the top of the market.

Example 5:

This market holds the position for quite a long time, taking profit 100% of AC height

Example 6: