Candlestick charts' M top and W bottom are two important reversal patterns, key signals indicating a shift from bullish to bearish or vice versa.

**M Top (Double Top) Trading Logic**

What does an M shape during an uptrend signify? The right-side high fails to make a new high, and trading volume continues to shrink. This indicates bullish exhaustion. How to operate?

The optimal strategy is to reduce positions immediately when the right top is confirmed and the price starts to decline—don't try to chase the high. Secondly, if the price effectively breaks below the neckline (closing price more than 3% below the neckline), it’s safest to clear your positions decisively. Finally, if the price rebounds after breaking the neckline and faces resistance, that’s a second opportunity to exit, allowing you to further reduce holdings or short the market.

**W Bottom (Double Bottom) Trading Logic**

What if a W shape forms at the end of a decline? The right-side low no longer makes a new low, and volume diminishes—indicating the bears are losing momentum. What should you do?

First, try a small position: when the right bottom stabilizes near the left bottom level, take a light long position (20-30% of your capacity) to see if a reversal can develop. The second step is the key: if the price breaks above the neckline with increased volume (closing more than 3% above the neckline), and the pattern is confirmed, then add to your position or go heavy. Finally, a pullback to retest the neckline for support after a breakout is another good opportunity to add.

The key is to recognize the signals clearly and not be fooled by the pattern.