W and M patterns

The W and M patterns are significant in stock trading as they provide traders and investors with valuable information about potential market movements. These patterns are used to identify bullish and bearish signals in the market.

The W Pattern: The W pattern is characterized by a "W" shape on the chart. It indicates a bullish market movement and is also known as the double bottom pattern. This pattern forms when price action creates a shape that resembles the letter "W" on the chart. It suggests that the price of a stock, which was previously declining, might start rising again.

The M Pattern: The M pattern is characterized by a "M" shape on the chart. It indicates a bearish market movement and is also known as the double top pattern. This pattern forms when price action creates a shape that resembles the letter "M" on the chart. It suggests that the price of a stock, which was previously rising, might start declining.

Traders and investors use these patterns to make informed decisions about their trades. It's important to note that these patterns should not be the only factor considered when making trading decisions.