The W bottom — also called a double bottom — is one of the most common and reliable bullish reversal patterns. Price falls to a support level, bounces, then retests that same level before finally reversing higher. The two lows create the characteristic W shape.
The first low shows sellers were in control. The bounce shows some buyers stepping in. The retest of the low is the critical moment — if price holds that level again, it tells you the sellers have run out of steam. The market tested that price twice and could not break through. When price then breaks above the neckline (the high between the two lows), it confirms that buyers have taken over.
Key insight: Volume often drops on the second low compared to the first, and then spikes on the neckline breakout. That volume pattern adds significantly to the reliability of the signal. Watch for it.
The other half is what’s happening in your head when you’re in the trade. Fear, ego, revenge trading, breaking your own stops — that’s where most accounts actually lose money. Not bad setups.