This shows a long base after a sharp drop, with the price eager to start climbing up again, resulting in a 10+% move up (picture below).

1, 2) A 20+% drop in price in less than 2 months, in a nice orderly progression down, the price stays below the 20MA the whole time, the -DI (red line) goes more and more above the +DI (green line) (of the DMI / ADX indicator) indicating a solid down trend. 

2, 3) The stock shows its first recovery attempt, the -DI line approaches the +DI line, but no real cross over occurs.  A first recovery after a down trend cannot be trusted.

3, 4) Price goes down, first reluctantly, then quickly to a new low, which is at the same level as the low at 2, forming a double bottom. A wide bottom like this is a good sign, meaning a good base to build from. Notice the clear scissoring of the -DI and +DI lines (such scissoring indicates a strong reversal of trend).  Price jumps up with strong up trend of stochastics after a cross over below 20. 

5) Price is close to bottom line of channel, +DI and -DI are wrapped around each other, indicating hesitation.  Fast stochastics cross above slow stochastics around 30 line.  At this point you could enter a trade with good confidence.

6) Price was making a plateau, but is now nosing up.  Volume is creeping up.  The +DI line crosses over the -DI line.  Stochastics in a strong uprise.  MACD making a prolonged base around the zero line.  MA's are squeezed for an extended time (see brown Squeezed MA indicator line), which indicates a pending change of trend.  All this is saying that the price is readying itself for a strong move up.