2025-12-29 20:22:25

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.

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CafeMinor

· 21h ago

Honestly, I've heard a lot about the W bottom and M top theories, but few people actually use them correctly... --- It's again about reducing positions, clearing positions, adding positions. The key is that the coin price simply doesn't follow the usual patterns. --- The W bottom sounds good, but when it breaks and rebounds, getting stuck at the neckline leaves me confused—is it a false breakout or a shakeout? --- Every time I see this kind of pattern analysis, I think of the days I got trapped... The problem is, the judgment is always too late. --- Bull exhaustion, bear lack of strength—these phrases sound familiar, but I’ve never been so clear about profits. --- Don't let patterns deceive you. This saying is right, but I always end up being the one fooled. --- Trying with a small position sounds prudent, but in reality, after trying, it either doesn't rise and I take a loss, or it rises and I regret having a small position.

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AllInDaddy

· 01-01 06:30

To be honest, I've stepped into countless pits with M Top and Bottom, and every time I think I can chase higher haha. I've made some profit by bottom-fishing W bottoms, but the key is to wait for volume confirmation. Don't rush.

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GovernancePretender

· 2025-12-31 11:23

Haha, saying M top and W bottom is easy, but in real operation, 99% of people can't get it right.

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mev_me_maybe

· 2025-12-29 20:52

Honestly, I'm tired of the M top and W bottom theory. The key issue is that I always get trapped when executing.

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ser_ngmi

· 2025-12-29 20:52

M-top W-bottoms are well explained, but in actual practice, there are too many pitfalls, and I often get trapped.

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OffchainWinner

· 2025-12-29 20:38

It's the same old story, relying on M tops and W bottoms to harvest profits every time. The key is that most people can't read the market accurately.

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Lonely_Validator

· 2025-12-29 20:37

Haha, the M top and W bottom pattern is back again. It looks quite accurate every time, but in actual trading, you're just getting trapped.

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TokenSleuth

· 2025-12-29 20:22

To be honest, I've fallen into the trap of that M top pattern before. Just looking at the shape isn't enough; the shrinking volume is the most easily manipulated part that can be repeatedly washed out.

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