In technical analysis, the chart patterns which look similar like M, is referred as Double Top, it can be described as the rise in market followed by a drop lead another rise to the same level as the previous rise and finally another drop, making a shape like alphabet M, which can be clearly observed in following diagram,
The twice high touch showing the resistance level, which market fails to break and it usually result in a downward trend.
This charting pattern looks the alphabet W and referred as Double Bottom. It is opposite of previously discussed double top. It can be described as the drop in the market follows by a rise, drops again to previous level and finally another rebound.
Double Bottom is shown in the following diagram,
The low touch showing the support level, which market fails to break and it usually in an upward trend.
- Forex Chart Patterns
- Double Top and Double Bottom
- Head and Shoulders
- Symmetrical Triangles, Ascending Triangle and Descending Triangle