A W pattern double bottom is a bullish reversal pattern in technical analysis that can appear after a period of declining prices. It gets its name from its shape, which resembles the letter “W” on a price chart. The pattern forms when price falls to a low, rebounds, declines again to test a similar low, and then begins moving upward.

The two lows represent areas where sellers have struggled to push the market lower. Between them, price creates a temporary high known as the neckline. However, simply seeing a W shape does not automatically mean that the market will reverse. Traders generally look for confirmation before considering an entry.

The key confirmation occurs when price breaks and closes above the neckline with convincing momentum. This breakout suggests that buyers have gained enough strength to challenge the previous downward structure. Some traders may also look for increased trading volume, bullish candlestick formations, momentum improvements, or a successful retest of the neckline.

The distance between the bottoms and the neckline can be used to estimate a potential price target. A common approach is to measure the vertical distance from the lowest point of the pattern to the neckline and project a similar distance above the breakout level.

Risk management remains important because double bottoms can fail. A price move below the second low can invalidate the setup. Therefore, traders often define a stop-loss and position size before entering.

Overall, the W pattern is better viewed as a potential setup rather than an automatic buy signal. The shape identifies a possible reversal, while confirmation helps traders determine whether the market is actually showing bullish strength.