#CryptoBuyZone #DoubleBottom #IfYouAreNewToBinance
To find altcoins nearing a double-bottom setup with oversold Bollinger Bands and RSI below 20—plus guidance on a few that may already match the setup:
🔍 1. Setup Criteria Explained
Double Bottom Pattern: Price forms two roughly equal lows with a peak in between—signals potential trend reversal
Bollinger Bands Oversold: Price touching or dipping below the lower band—a volatility/oversold alert
RSI below 20: Indicates extreme momentum exhaustion—rare and potent oversold near-blue‑chip threshold
🧠 Why This Combo Matters
Double bottom with RSI divergence adds reversal strength wundertrading.com.
Bollinger oversold shows price is at a statistically cheap level
RSI < 20 means capitulation—often a precursor to bounce
🔦 Current Coins to Watch
Coin Why It Qualifies Watch For
Coin A Formed nearly matching double bottom; price hugging lower BB; RSI ~18 Confirm second low bounce & neckline break
Coin B Double bottom shaped on 4h chart; Bollinger oversold; RSI ~19 with bullish divergence Look for breakout candle above mid‑BB + RSI rebound
Coin C RSI dropped to ~15 as price touched BB lower; second low formed; awaiting RSI uptick Entry on RSI crossing above 20 with strong volume
(Note: These are illustrative — check real-time charts on TradingView or similar.)
🛠️ How to Scan for These Signals
Use a screener or TradingView: filter for RSI < 20 and price touching lower BB.
Scan chart patterns: manually search for double bottoms (on 4h/daily).
Look for RSI divergence: second bottom should have higher RSI than the first.
Confirm with price action: wait for:
Bounce candle off lower BB
RSI moving up above ~20–30
Break of midline (20MA) or neckline
✅ Example Playbook
Identify top 20 coins with RSI < 20 + BB oversold.
Visually inspect for double-bottom structure.
Note entry point: once RSI crosses above ~20 and you see a bullish candle off BB lower band (or break above neckline).
Set stop-loss just below second bottom.
Targets: neckline (1st measured move), then upper/mean on BB.
📌 Final Takeaway
This strategy merges pattern, volatility, and momentum for strong reversal bias.
But false signals exist—always wait for confirmation and manage risk (stop-loss).