Yes. Double Bottom Confirmed. Middle Swing has been surpassed. A few bars later you get a strong down bar. Maybe it's a judgement call at this point?
Ok, if the pattern is confirmed and only moves a short ways and price begins to fail to the upside and head south, you have the option to sit and see what happens or potentially play what Anek has developed as the "DB / DT failure play". If I understood it correctly until this point, you look to short on the first pop up following the initial failure. Let's see if we can get his feedback too. Here is an example from the other day of an obvious failure. Hope it helps! ~Cx
Cx, Then that means the downtrend is not ready to end. Examining the closing bars breaking the support area is imperative. On a conservative level you want a pop up and followed by a failure as your experience grows you will know when to pull the trigger regardless of a pop up or not. Anek
Cx, At that point stop market orders should start getting hit like falling dominoes so as long as previous bar highs are not taken the trend is solid. Definitely no bright green during that time. Anek
Yeah no strong bars for several consecutive candles in that down move. Plenty of weak bars though. Short selling+stop running produce some nice moves . ~Cx