To trade the chart pattern, you must identify its "W" shape following a downtrend , which signals a potential bullish reversal. The pattern is confirmed only when the price breaks above the neckline —the resistance level formed by the peak between the two lows. 1. Identification and Structure
: Price returns to a similar level as the first low (typically within 3–4%) but fails to break below it. Breakout : The price rises and closes above the neckline. 2. Entry Strategies Trading chart patters How to Trade the Double B...
: The pattern must occur after a sustained downward move. First Trough : Price hits a low and rebounds. To trade the chart pattern, you must identify
: A temporary high is formed before price drops again. To trade the chart pattern