Lets for one moment just analyze this 15 min eurusd chart.
Price has been coming down with lower lows and lower highs.
Now a double bottom is provided.
Therefore there might be a change of trend. Price might retrace back 50% of the previous short move or even start a new bullish trend.
All that just by seeing price at numbers 1 and 2.
If we look at our indicators you may also notice divergence forming giving more weight to a bullish move.
Stop loss should be placed below the double bottom.
Best of PIPS.