What is the W Formation, What does it mean, How does it work?

The W pattern is an analysis pattern that identifies downtrends. A pattern is a form of formation and upbringing. It can be thought of as strengthening the education received on any subject. The W pattern shows the return of a bearish price to a bottom resistance point by peaking with the correction movement that develops after seeing the bottom level. What is the W pattern, what does it mean? How it works, what happens afterwards, we have compiled it with all the details.

The W Pattern is the rise of the price formed during the downtrend by changing direction with a correction movement after reaching the lowest level. Then, the event that the peak prices make the bottom again is called the W pattern. In terms of its similarity to the letter W, it is also called a double bottom or double top pattern. In order to be called a bottom or top pattern, double-digit decline or double rise is meant.

 What is a W Pattern and What Does It Mean?

The W pattern is a type of market analysis method. The W pattern shows falling trends or rising trends in the markets. Among the types of patterns, the W pattern, which is an important technical analysis method, is determined more effectively when prices fall to the bottom level. In the double bottom pattern, the symbol is seen in the form of the letter M.

 How does it work?

The W pattern is formed when prices see the bottom level and tend to correct. A highly reliable method of analysis, the w pattern is named according to bearish and bullish trends. Like a double top or a double bottom, a double top is formed by the upward swing of the trend and a double bottom is formed by the downward swing of the trend. In a double top pattern, there may be a period of 2-3 months between both peaks, or it may vary. In a double bearish pattern, the trading volume is at its highest level at the first bottom. The second bottom is the point where the price, which sees the lowest level, starts to rise again.

 What Happens Afterwards?

The W pattern, which has proven to be highly reliable, is a type of analysis where trends are bearish. The difference between the type of pattern defined as double top and double bottom is shown as W for bullish (double top) and M for bearish (double bottom). A difference of 3% can be seen between the peaks. In the double bottom pattern, prices that see the 2nd bottom level are expected to rise by passing the resistance level. In the M-shaped, i.e. bottom formation, the support is expected to break and prices are expected to fall at the H height level.

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What is a Double Top Pattern? What does the double top pattern, which is one of the easy to analyze technical patterns frequently preferred by traders in cryptocurrency markets, mean? What is a double top pattern target? This pattern, which is defined as a curious double top or double top pattern in cryptocurrency markets, is assumed by technical analysts to be a harbinger of the end of a strong uptrend. This pattern, which is often used to predict the bearish direction at the end of bullish trends, is also preferred in bearish positions for experienced traders. While the two peaks that form are almost equal to each other, a valley-like gap is observed between the two peaks. https://ieconomy.io/en/what-is-a-double-top-pattern/