W Pattern

Market Terms

We don't know everything about the markets.  We're just devoted to learners.  Taken from those smarter than ourselves, here's how we define W Pattern.

A double bottom pattern that forms a shape similar to the letter “W.”  It describes a change in trend and a momentum reversal from a previous leading price action.  It shows the drop of a stock or index, the subsequent rebound, another drop to the same or similar level, and ending with another rebound.  The twice-touched low in the W pattern is considered a support level.  It always follows a major or minor downtrend in a particular security and is a signal for a reversal and the beginning of an uptrend.