Detail look into “M” & “W” Structures/Patterns in Price Action

8 Feb 2021

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