I was introduced to alphabets in my tender age.. never thought they could be used in trading as well..
"W" and "M" are two of those..
This can b plotted with two Moving Averages(One say a 7 MA and the other 21MA)
Now, The concept is very basic..
W indicates that the market has made a double bottom and has moved from the bottoms..
M suggests that market has tried to cross the highs twice and has indeed failed to do so and indicates tht we are going to have a bearish period..(the definition of period can be made from the TF we r using to catch the W's and M's..eg: a W or M on a 1 min chart has lesser value than on an hourly chart.. However, this combination of W and M with 7 and 21 MA works good in a 5 min chart..)
This is a rare thing tht u come up with regular W's and M's but yes u do get more often in smaller TF than in larger ones.. Chart below explains more of it..!!
Now checkout for W's and M's using the 7MA, (the blue colour line in the charts) and the 21 MA has got nothing to do with the formation of M and W but indeed tht is plotted to be used as a crossover system(a general MA crossover system).. generally, the 4th line of M or W will be cut by the 7 MA on the 21 MA quite early which means tht u r ready for the trade and once the W or M is confirmed, u can add to ur positions..
But yes the success rate of this trades is high..!! do checkout the charts below and
Lets go to the kindergarten age.>!! Lets Do Trading with the basics.. (abcd....lol..)
"W" and "M" are two of those..
This can b plotted with two Moving Averages(One say a 7 MA and the other 21MA)
Now, The concept is very basic..
W indicates that the market has made a double bottom and has moved from the bottoms..
M suggests that market has tried to cross the highs twice and has indeed failed to do so and indicates tht we are going to have a bearish period..(the definition of period can be made from the TF we r using to catch the W's and M's..eg: a W or M on a 1 min chart has lesser value than on an hourly chart.. However, this combination of W and M with 7 and 21 MA works good in a 5 min chart..)
This is a rare thing tht u come up with regular W's and M's but yes u do get more often in smaller TF than in larger ones.. Chart below explains more of it..!!
Now checkout for W's and M's using the 7MA, (the blue colour line in the charts) and the 21 MA has got nothing to do with the formation of M and W but indeed tht is plotted to be used as a crossover system(a general MA crossover system).. generally, the 4th line of M or W will be cut by the 7 MA on the 21 MA quite early which means tht u r ready for the trade and once the W or M is confirmed, u can add to ur positions..
But yes the success rate of this trades is high..!! do checkout the charts below and
Lets go to the kindergarten age.>!! Lets Do Trading with the basics.. (abcd....lol..)