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Bottom (technical analysis)

Bottom (technical analysis) Definition

A bottom is an event in technical analysis, where prices reach a low, then a lower low, and then a higher low.

The first low signifies the pressure from selling was greater than the pressure from buying. The second lower low suggests that selling still had more pressure than the buying. The third higher low suggests that buying pressure will not let prices fall as low as the previous low. This turning point from selling pressure to buying pressure is called a bottom.

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Top (technical analysis)
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