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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Let's find out how to trade it
A complete ๐งต
Will appreciate likes and RTs
#banknifty #niftyOptions #OptionsTrading #StockMarket
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
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
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 )
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.
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
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.
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.
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
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
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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