11 Tweets 30 reads Jun 23, 2023
W and M patterns can fulfill all your trading dreams, If traded right.
Let's find out how to trade it
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1/n Variations of W and M patterns
There are 3 variations of these patterns
For your convenience, we will take W pattern only
1. Double bottom
2. Bear Trap
3. Higher Low
2/n How to use W pattern
It can be used in two ways
first : as a continuation pattern
Market is in a strong uptrend and market forms a W pattern
W can form at Fib levels near previous resistance ( now support )
Will discuss the entry soon
2/n continued....
Second is as a reversal
Market is in a strong downtrend and form a double top on weekly or monthly chart
This is a reversal near support
Chart below ( will discuss entry soon )
3/n Double bottom W pattern
In this pattern two bottoms are at similar level.
Entry is a green candle, and mostly the reversal is with Engulfing or Pinbar candle.
Target can be trailed or exit can be made with M Pattern.
4/n Bears Trap W pattern
This pattern traps the bear, by giving a false breakout of first bottom.
Entery is again a candlestick pattern in the form of Pinbar, Engulfing or Morning star.
target same as stated above
5/n Higher Low W pattern
This pattern is little tricky, and entry should only be made with the break of middle/pivot point.
Entry shown below.
Break should be with maribozu candle or entry can be made after retest.
6/ Examples 1- Mazdock
Market was in strong uptrend and formed a W pattern with engulfing candle entry.
If you noticed , the w low was near Fib level.
Clear 2nd Type W pattern is visible.
7/n Example 2 - Wipro
M pattern is evident in this example,
Wipro was in strong uptrend, formed a M pattern and reversed.
Two types of entry is also visible, comment below if you did not understand
8/n Example 3 - ICIL
W pattern is visible in this chart.
Market is in strong downtrend and after W formation on weekly chart, it reversed.
There was a morning star pattern also visible
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