W PatternsAs a rule, when I see a crooked W, I steer clear and watch it if it is a security I want. The impulse/long leg/is to the downside whereas a bullish crooked M pattern, the impulse leg is up. We are all different.
Crooked Ws are not always bearish, but it just gets too complicated for this post so I will stop there. For the most part, a W is bearish.
I have noted a W will pull to the middle, or the hump, or point in the middle of the W. I marked it with a green X.
Does this always happen? NO. Can it go further than this point or not as far? YES. Just a guide for me, and we are all different.
Does the same exact thing happen twice in the market on a regular basis? NO LOL
Often a Double Bottom will have a W associated with it. I often wait for price to come back to this point and reassess if I am not already in the security when I see it. You can do fib levels to figure out which bearish harmonic pattern the W represents if you wish to hang on to the last leg up of that W, then sell and catch it again when it hits another entry level. Ws are usually bearish but if you know your patterns, it is possible to go long on the last leg up of the W.
No recommendation
Tomorrow is another day (o:
