bollinger bands w bottom

Bollinger Bands M-Tops & W-Bottoms: Spotting Reversal Patterns

Bollinger Bands aren’t just for volatility—they can help you spot high-probability reversal patterns like the W-Bottom and M-Top. These patterns are especially useful for swing traders looking to catch trend shifts early.


What Is a W-Bottom?

A W-Bottom signals a bullish reversal after a downtrend.

Key Features:

  • Price makes a lower low near or below the lower Bollinger Band
  • Then forms a higher low inside the bands
  • Price closes above the middle band (SMA 20) on the second leg

✅ A breakout above the middle band confirms the shift in momentum.


What Is an M-Top?

An M-Top signals a bearish reversal after an uptrend.

Key Features:

  • Price forms a higher high near or above the upper band
  • Then makes a lower high inside the bands
  • A breakdown below the middle band confirms bearish momentum

✅ Often followed by a trend reversal or a strong pullback.


How to Trade These Setups

W-Bottom Entry:

  • Wait for 2nd bottom to form
  • Enter long on a close above the middle band
  • Stop-loss: below 2nd low
  • Target: recent highs or upper band

M-Top Entry:

  • Wait for 2nd top to form
  • Enter short on break below the middle band
  • Stop-loss: above 2nd high
  • Target: lower band or support zone

Tips for Identifying W/M Patterns

  • Use RSI for divergence confirmation
  • W-Bottoms work best in oversold conditions
  • M-Tops work best when price is overbought
  • Avoid mid-pattern entries—wait for confirmation close

✅ Chart Example (Visual Description)

  • In a W-Bottom: first low breaches lower band, second low stays inside → signals weakening sellers
  • In an M-Top: first high pierces upper band, second high fails → shows buyer exhaustion

✅ FAQs

Q1: What is a W-Bottom in Bollinger Bands?
A bullish double-bottom pattern, where the first low breaks the band, and the second low forms inside the bands.

Q2: Are M-Tops and W-Bottoms reliable?
Yes, especially when confirmed with volume or RSI divergence.

Q3: What timeframe works best for these patterns?
4H and Daily charts work best for swing trading; 15m–1H for intraday.

Q4: How are these different from regular double tops/bottoms?
Bollinger Bands provide volatility context, which improves signal reliability.

Q5: Can I use these with other indicators?
Yes—pair with RSI, MACD, or candlestick patterns for confirmation.

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