Hi,
Can anyone explain me what is a w bottom, please?
Thanks
Per IBD:
Double bottoms typically last seven weeks to a year.
The correction in the base from the highest to lowest point can be as much as50%in a bear market. Normally, the correction is25%or 30%. In a double-bottom base, the second bottom of the W has to be as low or lower than the first bottom. Double bottoms sometimes have handles similar in depth and length as those found in cup-with-handle patterns. These handles usually last at least one week. They can correct as much as 20% in choppy markets. A handle should form in the base's upper half, drift calmly downward and take shape in light volume.
The buy point in a double bottom is 10 cents above the middle peak of the W. If there's a handle, the buy point would be 10 cents above the handle's high.
The middle peak of the W should be lower than the high on the left side of the base, but above the base's midpoint. Strong double bottoms trade tightly, show accumulation and find support at key support lines such as the 10-week and 40-weekmovingaverages.
Thanks.
are there any screeners or filters that can help find stocks with potential W formations or double bottoms?
http://www.3stocksonfire.org/trading/index.php?topic=7100.msg119202#msg119202