Double top and double bottom formations are the most common reversal patterns. If double top formations occur after an uptrend, they are called "M" formations; after a downtrend, double bottom formations are called "W" formations.
Although most traders are familiar with these two chart patterns, it is helpful to study them because the basics covered here are applicable to more complex strategies later on. For example, tops and bottoms are very important when working with Fibonacci price corrections.
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