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.

Mentioned in ?

U-Formation
V formation
V-formation
V-Shaped Recovery

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.</li>

Bollinger Bands

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