W-type bottom

W-type bottom

A double bottom pattern in a price history that looks like the letter W. See: Technical analysis.

W Formation

In technical analysis, a price trend characterized by a sharp fall, then a sharp rise, then a second sharp fall, and finally a second sharp rise. It is called a W formation because the series of rises and falls vaguely looks like the letter W. Technical analysts may consider a W formation a buy signal if the second sharp rises outpaces the two previous price highs.
References in periodicals archive ?
Bollinger Bands can also be used to clarify pure price patterns such as M-type; tops and W-type bottoms, momentum shifts, etc.