The W-M Pattern Trading Strategy
Presenting the W-M Price Pattern in TradingView
Pattern recognition is a key concept in trading. This article discusses the W-M price pattern, a configuration detected on a normalized index with the aim of predicting short-term reversals.
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The W-M Pattern
The W-M pattern is a price configuration seen on the normalized index which takes the close price as an input.
The normalized index takes the recent n close prices and traps them between 0 and 1 with 0 representing the lowest close price in the lookback period and 1 representing the highest close price in the lookback period. The trading conditions of the W-M pattern are as follows:
- A long signal is generated whenever a…
