A Double Bottom, also known as a W pattern, is a bullish reversal pattern that generally appears after a downtrend. It forms around two successive lows separated by an intermediate high that defines the neckline.
The pattern is considered confirmed when price breaks above the neckline. The theoretical target is then calculated by projecting the height of the Double Bottom above the neckline. A pullback to the neckline may also occur after the breakout.
The Double Top, also known as an M pattern, is a bearish reversal pattern that typically appears after an uptrend. It consists of two successive peaks separated by an intermediate trough that defines the neckline.
The pattern is considered confirmed when the price breaks below the neckline. The theoretical price target is then calculated by projecting the height of the Double Top downward from the neckline. A pullback to the neckline may also occur after the breakout.
The W & M / Double Bottom & Top Pack combines tools for detecting and visualizing bullish and bearish reversal patterns on ProRealTime.
The pack includes:
The two Screeners automatically scan the market for W and M patterns formed within the last 50 candlesticks. They can identify patterns at different stages of formation, before or during confirmation through a neckline breakout.
Results are sorted according to the pattern's stage of formation. These different stages can be included or excluded from the results to focus on patterns near their lows or highs, approaching the neckline, or currently breaking through it.
A general filter applied on the daily timeframe, based on price and trading volume, allows you to select the desired level of liquidity.
The two Indicators display the detected patterns directly on ProRealTime charts. Different graphical elements can be shown or hidden according to your preferences: arrows, lines, triangles and theoretical price targets.
Numerous parameters allow you to customize pattern detection and display according to your own criteria. All settings can be adjusted directly in the Screeners' "Variables" menu or the Indicators' "Configuration" menu in ProRealTime, without modifying the code.
Adjustable validation criteria:
Available filters:
General filtering - Screeners only:
Display Options - Indicators only:
Video presentations :
Details of available settings:
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Disclaimer
Our proposed tools (indicators and screeners) are not investment advices but tools allowing everyone to find specific graphic configurations. The automated trading systems offered have been developed and optimised using historical data; however, past performance is no guarantee of future results. Investing in the financial markets involves risks up to and including the total loss of capital. The user of the proposed tools understands and accepts that the use of these tools is under his sole and entire responsibility. P2C Trading declines all responsibility in the use of the tools and the consequences that would result.
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