W-Pattern Detection
SOL Safe uses AI to detect W-patterns (double-bottoms) on Solana tokens - a chart pattern that often signals a bullish reversal.
What is a W-Pattern?
A W-pattern, also known as a double-bottom, is a chart pattern that looks like the letter "W". It forms when:
- Price drops to a low point (first bottom)
- Price bounces up partially
- Price drops again to a similar low (second bottom)
- Price breaks above the middle peak (confirmation)
Ā ā²Ā ā±Ā Ā ā²Ā ā±
Ā Ā VĀ Ā Ā Ā V
Classic W-Pattern / Double-Bottom Formation
Why Trade W-Patterns?
- High probability - Double-bottoms have a ~70% success rate in crypto
- Clear entry - Buy on confirmation of the pattern
- Defined risk - Stop loss below the bottom
- Measurable target - Target equals the height of the W
How AI Detection Works
SOL Safe continuously scans price data for all Solana tokens looking for W-patterns:
- Price Analysis - Identifies local lows and highs in price action
- Pattern Matching - Compares formations to ideal W-pattern characteristics
- Confirmation Check - Waits for price to break above the middle peak
- Quality Score - Rates the pattern strength (1-100)
- Signal Generation - Alerts you when high-quality patterns are found
Configuring W-Pattern Settings
Click the gear icon āļø on the W-Pattern panel to configure:
| Setting | Description | Recommended |
|---|---|---|
| Min Pattern Score | Minimum quality score (0-100) | 70+ |
| Min Market Cap | Filter by market cap | $50K+ |
| Min Liquidity | Ensure tradeable tokens | $10K+ |
| Timeframe | Chart timeframe for detection | 5m, 15m, 1h |
| Buy Amount | SOL to spend per signal | 0.05-0.1 SOL |
Reading W-Pattern Signals
Each W-Pattern signal card shows:
- Token info - Name, symbol, and logo
- Pattern score - Quality rating (higher = stronger pattern)
- Current price - Where the token is trading now
- Entry zone - Suggested buy range
- Target - Expected price if pattern plays out
- Stop loss - Where to exit if pattern fails
š” Pro Tip: Higher pattern scores (80+) have better success rates. Be more aggressive with high-score patterns and conservative with lower ones.
Trading W-Pattern Signals
Entry
Buy when the pattern is confirmed (price breaks above middle peak) and the signal appears. Don't chase if price has already moved significantly from the entry zone.
Stop Loss
Place your mental stop loss below the second bottom of the W. If price breaks below this level, the pattern has failed.
Take Profit
Target the height of the W added to the breakout point. For example, if the W is 20% tall and breakout is at $1, target is $1.20.
Risk Management
- Only risk 1-2% of portfolio per trade
- Use small position sizes for lower-score patterns
- Take partial profits at 50% of target
Pattern Examples
ā Good W-Pattern
- Both bottoms at similar price levels
- Clear middle peak between bottoms
- Volume increases on breakout
- Pattern forms over reasonable time (hours to days)
- Score: 80+
ā Weak W-Pattern
- Bottoms at very different levels
- No clear middle peak
- Low volume throughout
- Pattern forms too quickly (minutes)
- Score: Below 60
Combining with Other Signals
W-patterns work best when combined with other confirmations:
- Whale activity - Whales buying during pattern formation
- Volume spike - Increased volume on breakout
- Social buzz - Growing mentions and interest
- Support levels - Pattern forming at known support