Detail look into “M” & “W” Structures/Patterns in Price Action
Hello everyone:
Welcome back to another price action structures/patterns video.
Today let's take a look into the “M” and “W” style structures/patterns.
Many traders may use these types of structures/patterns in their trading plan/strategies.
Let me show you guys my interpretation of them, and how I utilize them in my trading as well.
It's important to understand many of my previous price action analysis, structures/patterns videos all tie into this one as well, I will put those links below.
Essentially, a “M” or “W” style pattern is a double tops/bottoms pattern that appears mostly towards an end of a run of the current price.
They are “reversal” price action structures/patterns. They are most effective when we tie in other price action structures/patterns with it.
Let me give multiple examples of these structures/patterns in different markets and time frames.
“M” Style Pattern
-Double tops structure after price failed to continue the first initial push down.
-Top of the Right M, needs to have a reversal structure on the LTF or smaller time frames (ascending channel, H and S pattern..etc)
-Can either enter at the breakout of the reversal structure or the first correction after the impulse down
“W” Style Pattern
-Double Bottoms after price failed to continue the first initial push up.
-bottom of the Right W, needs to have a reversal structure on the LTF or smaller time frames (descending channel, Inverse H and S pattern..etc)
-Can either enter at the breakout of the reversal structure or the first correction after the impulse up
Double Top/Bottoms:
Ascending/Descending channel:
Head and Shoulder Pattern:
Continuation/Reversal Correction:
Multi-Time Frame Analysis:
As always, any questions, comments or feedback please let me know.
Thank you
Jojo
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.