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It looks like a double bottom to me which is a trend reversal pattern.
Frequently there will be a low, the first bottom, followed by a second
bottom that tests the first. Ideally, at least from my perspective, the
second bottom should occur on lower volume. These kinds of reversal
patterns are pretty common on a variety of time scales. For a big one, look
at the double bottom that signalled the end of the 1998 bear market.
Dan
>From: Eric Porcher <eporcher@xxxxxxxxxxxxxxxx>
>Reply-To: metastock@xxxxxxxxxxxxx
>To: metastock@xxxxxxxxxxxxx
>Subject: Basic chart formation question
>Date: Wed, 27 Mar 2002 11:01:03 -0800
>
>A non-Metastock question for anyone who cares to comment...
>
>
>Attached are two views of the Nasdaq Composite, hourly, from
>http://cbs.marketwatch.com/tools/quotes/intchart.asp?siteid=mktw&symb=comp
>
>The second, smaller image, is the formation I'm curious about. Basic
>stuff I'm sure. What's it called, and what are the implications?
>
>Thanks,
>Eric
>
>
><< COMPMar270210-40PST.gif >>
><< COMPMar270210-40PSTsmall.gif >>
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