As of 09/28/2022
  Indus: 29,684 +548.75 +1.9%  
  Trans: 12,457 +303.78 +2.5%  
  Utils: 945 +10.61 +1.1%  
  Nasdaq: 11,052 +222.14 +2.1%  
  S&P 500: 3,719 +71.75 +2.0%  
YTD
-18.3%  
-24.4%  
-3.7%  
-29.4%  
-22.0%  
  Targets    Overview: 09/15/2022  
  Up arrow32,000 or 29,200 by 10/15/2022
  Up arrow13,800 or 11,800 by 10/15/2022
  Up arrow990 or 900 by 10/15/2022
  Up arrow11,975 or 10,700 by 10/15/2022
  Up arrow3,800 or 3,500 by 10/15/2022
CPI (updated daily): Arrows on 9/28/22
As of 09/28/2022
  Indus: 29,684 +548.75 +1.9%  
  Trans: 12,457 +303.78 +2.5%  
  Utils: 945 +10.61 +1.1%  
  Nasdaq: 11,052 +222.14 +2.1%  
  S&P 500: 3,719 +71.75 +2.0%  
YTD
-18.3%  
-24.4%  
-3.7%  
-29.4%  
-22.0%  
  Targets    Overview: 09/15/2022  
  Up arrow32,000 or 29,200 by 10/15/2022
  Up arrow13,800 or 11,800 by 10/15/2022
  Up arrow990 or 900 by 10/15/2022
  Up arrow11,975 or 10,700 by 10/15/2022
  Up arrow3,800 or 3,500 by 10/15/2022
CPI (updated daily): Arrows on 9/28/22

Bulkowski on the Big W Chart Pattern

Updated with new statistics on 8/25/2020.

A big W is a double bottom with tall sides. Price often confirms the double bottom and approaches the height of the left side trend start before retracing and forming a handle. Once price completes the handle, the rise resumes.

Important Results
Identification Guidelines
Trading Tips
Example
Other Examples
See Also

A big W chart pattern appears

A Big W chart pattern

Big W: Important Bull Market Results

Overall performance rank (1 is best): 11 out of 39
Break even failure rate: 9%
Average rise: 46%
Throwback rate: 64%
Percentage meeting price target: 74%

The above numbers are based on more than 2,100 samples. See the glossary for definitions.

Big W: Identification Guidelines

CharacteristicDiscussion
Price trendDownward leading to the pattern.
ShapeA big W shape with twin bottoms and tall sides.
Reversal patternLook for a double bottom reversal pattern at the base of the big W.
Tall sidesThe best performing big W chart patterns have tall, straight declines leading to the bottom of the big W.
Rise between bottomsThe rise between the valleys of the double bottom is 10% to 20% or more.
VolumeRecedes 69% of the time.
Breakout ConfirmationThe pattern confirms as a valid one when price closes above the highest peak between the two bottoms.

Top of page

Big W: Trading Tips

Consult the associated figure on the right.

Trading TacticExplanation Big W measure rule
The Measure Rule
Measure ruleCompute the height from the highest peak to the lowest valley (D-B) and then add the result to the price of the peak high D). The result is the target price. The link to the left gives more information about the measure rule.
BreakoutOccurs when price closes above the peak high (D).
StallFor swing traders, buy at the double bottom low (E) and ride price upward to confirmation of the double bottom (the high between the two bottoms, D). Price often pauses there. If price drops below the low of the second bottom (E), exit the position immediately. If price confirms the double bottom, expect a rise approaching the left side high (A).
Position tradersWait for confirmation of the double bottom before taking a position and be prepared to sell as the stock nears the price of the left side high (the price at C approaches the price at A).

Top of page

Big W: Example

A big W chart pattern example

The above figure shows an example of a big W chart pattern. Price begins its decline at A and reaches a low at B in just a few months. Price bounces and retraces to form a second low in September (C). The Eve & Adam double bottom confirms as a valid chart pattern when price closes above the confirmation line, as shown. A pretty symmetrical triangle appears during October.

-- Thomas Bulkowski

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More

Other Big W Examples

See Also

 

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