Bottom Formation

1. Float Turnover at a Bottom
Buying float turnover breakouts is a quick way to lose money.  This is because the descending top float channel line is best viewed as first and foremost--a line of resistance,  and thus breakouts can easily roll over and head south.  The key to making money off bottom formations is to wait for a follow through day.  These occur when the stock moves higher after the breakout and does so on very big volume.