"M" Patterns (or "W" patterns)


Not sure if you can tell the "M" patterns here as distinctly as in the Monthly chart, but I wanted to share with my readers about just observing patterns in the market. We are looking for the "M" patterns.

I've just identified 5 "M" patterns on the Daily S&P chart. There are more than that here, but I just wanted to show 2 bullish and 3 bearish patterns.

In each of these, when the midpoint of the "M" pattern was broken to the downside, price action went bearish. This goes in conjunction with my prior post and observation the "M" midpoint was broken to the downside. Yet, at this very moment, we are in a bullish tendency.

This chart is DAILY, which is a different perspective than the MONTHLY or QUARTERLY.

Just something to think about.

"W" patterns work similarly. If you break the midpoint of the "W", that is a bullish signal.

For all intensive purposes, I'll just speak of the "M" right now.

If you have an "M" pattern where the second hump is lower than the first, that is an even more bearish signal. The bulls do not have good strength to push price action up.

If the "M" pattern's second hump is higher, this is signalling more bullishness.

Keep in mind, Head & Shoulder patterns are more extended "M" or "W" patterns.
4 Responses
  1. rdv Says:

    Hi Doris,

    Glad to see you writing again, as I'm not on Twitter anymore. Lots of resistance coming up on the S&P and the bulls might be in for some disappointment soon. I like your charts as well as your reasoning.

    Greetz, Roberto


  2. Doris Says:

    I noticed you hadn't been posting. Did you completely remove yourself from Twitter? I didn't check. Why aren't you on Twitter anymore or at least posting? Too distracting?

    I'm a bear at heart, so what goes up, must come down, right? However, we all have to look at perspective, right? For the daytrader, it doesn't really matter much.

    Thanks regarding my charts & reasoning.


  3. rdv Says:

    The thing at Twitter or other socalled 'social' sites is that it takes a lot of time. The other thing is that I don't like the 'followers' and 'friends'-thing. I do not believe in such 'friends'.

    On the other hand; I've met you but that was not enough to make me a believer in such sites.


  4. Doris Says:

    That's fair, Roberto. I've calmed down on using Twitter myself. I've just had too many irons in the fire. If I have time, okay, but I don't worry about it, or Facebook or even writing here.

    My main concern is my family, trading, living life. I like sharing it with people here in virtual world, but that takes time and away from my life.

    That's why you see sporadic posting of me. I've finally balanced things out and put the internet stuff behind my life. I'm much happier & at peace.

    We do what we need to do. Just letting you know I've missed seeing your Twits, but then, the past 2+ weeks, I haven't been Twittering much.


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