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The “W” chart pattern, also known as the double bottom pattern, is a bullish reversal pattern in technical analysis. It indicates a potential change from a bearish trend to a bullish trend. Here’s a brief overview:

Characteristics of the W Pattern:
Formation: The pattern forms after a downtrend and consists of two consecutive lows (bottoms) with a peak in between, creating a “W” shape on the chart12.
Support Levels: The two bottoms represent significant support levels. The price drops to a certain level, rebounds, drops again to a similar level, and then rebounds once more1.
Breakout: The pattern is confirmed when the price breaks above the peak between the two bottoms. This breakout signals a potential upward trend2.
How to Trade the W Pattern:
Entry Point: Traders often enter a long position when the price breaks above the peak between the two bottoms.
Stop Loss: A stop loss is typically placed below the second bottom to manage risk.
Profit Target: The profit target can be estimated by measuring the distance between the bottoms and the peak, and projecting that distance upward from the breakout point