I thought this may be an interesting situation for those interested in following double bottom setups

Daily Chart

Wheat Cash CFD. Source: CMC Tracker Wheat Cash CFD. Source: CMC Tracker

Regular readers will be pretty familiar with this setup

  • Well established and ideally steep downtrend
  • Double Bottom or "W" type formation where the first low is under the lower Bollinger Band and the second is above it
  • Setup triggered by a move past the high of the candle making the 2nd low
  • Initial stop behind the low

Applying a price filter and allowing some tolerance to the entry trigger and stop loss levels under this strategy is a common technique. The order ticket below is an example of applying this approach

Source: CMC Tracker Source: CMC Tracker