1. The "M" head pattern is also called a double top. It is one of the top reversal pattern theories. Because the shape is similar to the letter M, it is called an M head. Its formation is generally driven by good news and funds, and the stock index continues to rise (generally around 50%-100%). At this time, due to the changes in the factors supporting the rise, the market has accumulated greater risks. Some investors, especially large institutions, began to sell stocks to lock in profits. This will cause a decline. When the stock index falls back to a certain level, it attracts investors again. Certain short-term investors bought the stock at the bottom, and the stock price began to rise again. However, it fell again under selling pressure near the high point of the previous wave, forming an M head.

2. The W bottom is where support is found in individual stocks. But it doesn't mean there is any upward momentum. The strength of the rise needs to be judged by trading volume. There are W-shaped double bottoms, and of course there are also triple bottom range consolidations.

The W bottom shape is an important K-line shape. Its trend looks like the English letter "W". The W-bottom shape is a mid-term bottom shape, which usually occurs in the late stage of a downtrend and usually does not appear in the middle of the market trend. There are two lows and two rises in the W-bottom shape. A horizontal neckline pressure can be created from the first high point. When the quotation breaks through the neckline upward again, it must be accompanied by active transactions, and the W-bottom is officially established. .