Trading WPattern

Target

W Pattern llf

Source: TradeStati on

793.00

792.00

791.00

BSEH

789.00

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786.00

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783.00

10:06 10:30 10:59 11:21 12:02 12:50 13:40 14:30 14:51 15:35 ' 1/24 9:45

Trading W-Pattern

The example above illustrates a W-Pattern formation at the market highs from the Russell Emini (ER2) chart. After confirmation of the second leg, a "long" trade is entered at the breakout of the neckline/hump level.

1. Enter a "long" trade above the high of the breakout bar of the hump level.

2. Place a "stop" order below the low of the pattern.

3. Set a "target" at the "swing high" prior to the first leg.

Trading M-Pattern

Trading M-Pattern

The example above illustrates a combination of M-Pattern and M-Top. M-Pattern is an occurrence where prices form a M-shape pattern in a congestion zone prior to the trend continuation. M-Top is a clear "top" formation and reversal of trend change. M-Pattern and M-Top are tradable and have clear trading rules and have high reliability. In addition, they are part of 5-point Gartley structures with similar trading rules as Gartley patterns. The major difference between these patterns is M-Pattern continues in the prior direction compared to the M-Top which terminates the prior trend.

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