{"id":6723,"date":"2021-01-25T19:06:00","date_gmt":"2021-01-25T16:06:00","guid":{"rendered":"https:\/\/roboforex.com\/blog\/?p=6723"},"modified":"2026-05-26T10:57:24","modified_gmt":"2026-05-26T07:57:24","slug":"how-to-trade-arthur-a-merrills-m-and-w-patterns","status":"publish","type":"post","link":"https:\/\/roboforex.com\/blog\/2021\/01\/25\/how-to-trade-arthur-a-merrills-m-and-w-patterns\/","title":{"rendered":"How to Trade Arthur A. Merrill M and W Patterns"},"content":{"rendered":"<!DOCTYPE html PUBLIC \"-\/\/W3C\/\/DTD HTML 4.0 Transitional\/\/EN\" \"http:\/\/www.w3.org\/TR\/REC-html40\/loose.dtd\">\n<html><body><p>In most cases, the analysis gets reduced to searching for repeated <a href=\"https:\/\/roboforex.com\/blog\/2019\/08\/05\/trading-the-most-popular-patterns\/\">patterns on price charts<\/a>. Those can be simple <a href=\"https:\/\/roboforex.com\/blog\/2019\/08\/05\/trading-the-most-popular-patterns\/\" data-internallinksmanager029f6b8e52c=\"60\" title=\"Patterns\">patterns<\/a>, such as the <a href=\"https:\/\/roboforex.com\/blog\/2019\/08\/29\/triangle-and-wedge-patterns-in-technical-analysis\/\">Triangle<\/a> or <a href=\"https:\/\/roboforex.com\/blog\/2019\/09\/11\/the-flag-and-pennant-patterns-trading-details\/\">Flag<\/a>, or more complicated ones, such as the Dragon or Wolfe&rsquo;s Waves. However, all these patterns are united by a clear price structure. Arthur Merrill, the hero of this article, called his patterns &ldquo;wave structures&rdquo;. The name is connected to the popularity of Dow Theory, describing wave-like price movements, at those times. By the way, popular Elliott&rsquo;s Waves are based on this theory.<\/p>\n\n\n\n<p>As we know, any search for patterns can be subjective, and only 5 out of 10 traders will notice a complete pattern. However, if we speak about mathematical patterns, 10 out of 10 traders will see the same <a href=\"https:\/\/roboforex.com\/blog\/2019\/11\/28\/signals-on-forex-where-to-search-how-to-find-filter-and-create\/\">signals<\/a>.<\/p>\n\n\n\n<p>Merrill tried to find the same logic in graphic structures because many sooner or later turn back to searching patterns on the chart. In the end, he singled out 32 graphic patterns and distributed them between two groups: 16 M-shaped and 16 W-shaped patterns. They indicate the end of either an ascending or descending trend, sort of reflecting one another mirror-like.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"0-the-history-of-merrill%E2%80%99s-patterns\"><span class=\"ez-toc-section\" id=\"The_history_of_Arthur_Merrill_patterns\"><\/span>The history of Arthur Merrill patterns<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The first attempt to describe such patterns is considered to belong to Robert Levi, a financier. In 1971, he took up studying five-pointed price patterns, trying to structure them but failed to complete his studies because the patterns were too abundant (about 2,000 patterns).<\/p>\n\n\n\n<p>Levi abandoned the idea, and it was left behind for a decade. At the beginning of 1980, Arthur Merrill re-took studying the patterns, which resulted in singling out and structuring the five-pointed patterns below.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"1-why-are-they-called-m-and-w-shaped\"><span class=\"ez-toc-section\" id=\"Why_are_they_called_M-_and_W-shaped\"><\/span>Why are they called M- and W-shaped?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Merrill based the patterns he studying on their similarity to two letters &ndash; M and W. There is no deep hidden sense in it.<\/p>\n\n\n\n<p>This is an important thing to keep in mind because classic patterns also feature M and W shapes but those might indicate the direction of a future position, while Merrill&rsquo;s patterns do not follow the same logic.<\/p>\n\n\n\n<p>For example, an M-shaped <a href=\"https:\/\/roboforex.com\/blog\/2020\/08\/04\/double-triple-top-double-triple-bottom-patterns\/\">Double Top pattern<\/a> <a href=\"https:\/\/roboforex.com\/blog\/2019\/11\/28\/signals-on-forex-where-to-search-how-to-find-filter-and-create\/\" data-internallinksmanager029f6b8e52c=\"101\" title=\"Signals\">signals<\/a> to sell, while a W-shaped <a href=\"https:\/\/roboforex.com\/blog\/2020\/08\/04\/double-triple-top-double-triple-bottom-patterns\/\">Double Bottom pattern<\/a> signals to buy. Nonetheless, this simple principle does not apply to Merrill&rsquo;s patterns.<\/p>\n\n\n\n<div class=\"block-banner\">\n    <div class=\"block-banner__content\">\n      <div class=\"block-banner__text-content\">\n        <p class=\"block-banner__title\">Elevate your trading with <span class=\"nowrap\">R StocksTrader<span><\/span><\/span><\/p>\n        <p class=\"block-banner__text\">Get access to more than 12,000 instruments with a single account!<\/p>\n      <\/div>\n    <div class=\"block-banner__images-wrapper\">\n      <img decoding=\"async\" class=\"block-banner__image block-banner__image_mobile\" src=\"https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2023\/09\/rst-mobile.png\" alt=\"partner-programme\">\n    <\/div>\n      <a href=\"https:\/\/my.roboforex.com\/en\/register\/rtrader\/\" class=\"block-banner__button\" target=\"_blank\" rel=\"noopener nofollow\">Start Trading<\/a>\n    <\/div>\n    <div class=\"block-banner__images-wrapper\">\n      <img decoding=\"async\" class=\"block-banner__image block-banner__image_desktop\" src=\"https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2023\/09\/rst-desktop.png\" alt=\"partner-programme\">\n    <\/div>\n  <\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"2-how-to-trade-so-many-patterns\"><span class=\"ez-toc-section\" id=\"How_to_trade_so_many_patterns\"><\/span>How to trade so many patterns?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>As long as the patterns are fully mirror-like so that only 16 out of 32 are unique, we will only show how to use M shapes. For W shapes, rules are identical but inverted.<\/p>\n\n\n\n<p>For example, if by M1 we buy, by the inverted W16 pattern, we consider selling. So do not get scared off by a large number of patterns, in reality, there are not 32 but 16 of them. In this article, we will have a look at all of the patterns and compare them to patterns from classic <a href=\"https:\/\/roboforex.com\/blog\/2019\/08\/20\/basics-of-technical-analysis\/\" data-internallinksmanager029f6b8e52c=\"64\" title=\"Tech analysis\">tech analysis<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"3-m1-and-w16\"><span class=\"ez-toc-section\" id=\"M1_and_W16\"><\/span>M1 and W16<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The last point of the M1 pattern reflects the end of a decline, but the author says that it is not as much a reversal point, rather a point of being extremely oversold. As for classic tech analysis, this one is similar to the <a href=\"https:\/\/roboforex.com\/blog\/2019\/08\/29\/triangle-and-wedge-patterns-in-technical-analysis\/\">Wedge reversal pattern<\/a>.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2021\/01\/merrills-technical-figures-arthur-a.-merrill-m1-w16.jpg\"><img loading=\"lazy\" decoding=\"async\" width=\"754\" height=\"300\" src=\"https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2021\/01\/merrills-technical-figures-arthur-a.-merrill-m1-w16.jpg\" alt=\"Arthur Merrill's patterns - M1 and W16\" class=\"wp-image-6725\" srcset=\"https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2021\/01\/merrills-technical-figures-arthur-a.-merrill-m1-w16.jpg 754w, https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2021\/01\/merrills-technical-figures-arthur-a.-merrill-m1-w16-360x143.jpg 360w\" sizes=\"(max-width: 754px) 100vw, 754px\" \/><\/a><figcaption class=\"wp-element-caption\">Arthur Merrill patterns - M1 and W16<\/figcaption><\/figure>\n\n\n\n<p>Here, we also watch the pattern contract and the trend &ndash; reverse upon breaking the pattern away. To place the goal, calculate the height of the pattern and measure these points from the point of the breakaway.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"4-m2-and-w15\"><span class=\"ez-toc-section\" id=\"M2_and_W15\"><\/span>M2 and W15<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In the M2 pattern, the price goes in some sort of a downward zigzag, after which an upwards zigzag appears, but we do not wait for a renewal of the high as in M1. This pattern is similar to an <a href=\"https:\/\/roboforex.com\/blog\/2019\/09\/16\/head-and-shoulders-pattern\/\">Inverted Head and Shoulders<\/a> from classic <a href=\"https:\/\/roboforex.com\/blog\/2019\/08\/20\/basics-of-technical-analysis\/\">tech analysis<\/a>. In the picture, the right &ldquo;shoulder&rdquo; is rather low but it still remains an example of our pattern. To estimate the goal, measure the pattern and place the goal as many points away from the breakaway point on the &ldquo;neck&rdquo;.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2021\/01\/merrills-technical-figures-arthur-a.-merrill-m2-w15.jpg\"><img loading=\"lazy\" decoding=\"async\" width=\"754\" height=\"300\" src=\"https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2021\/01\/merrills-technical-figures-arthur-a.-merrill-m2-w15.jpg\" alt=\"Arthur Merrill's patterns - M2 and W15\" class=\"wp-image-6726\" srcset=\"https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2021\/01\/merrills-technical-figures-arthur-a.-merrill-m2-w15.jpg 754w, https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2021\/01\/merrills-technical-figures-arthur-a.-merrill-m2-w15-360x143.jpg 360w\" sizes=\"(max-width: 754px) 100vw, 754px\" \/><\/a><figcaption class=\"wp-element-caption\">Arthur Merrill patterns - M2 and W15<\/figcaption><\/figure>\n\n\n\n<p>Also, in a downward movement, when the price fails to demonstrate a new low under the previous one but shows a new high above the previous one, the trend reverses. This is the market&rsquo;s nature. So even if your understanding of the pattern is simplistic, always keep in mind the potential of a <a href=\"https:\/\/roboforex.com\/blog\/2020\/01\/17\/how-to-catch-a-trend-reversal-5-detection-strategies\/\" data-internallinksmanager029f6b8e52c=\"105\" title=\"Trend reversal\">trend reversal<\/a> when the price cannot go on down and breaks through the nearest high.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"5-m3-and-w14\"><span class=\"ez-toc-section\" id=\"M3_and_W14\"><\/span>M3 and W14<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>M3 is said to be the second-popular Merrill&rsquo;s pattern. Here, the price renews the low before a potential reversal upwards. In modern trading, it is similar to the <a href=\"https:\/\/roboforex.com\/blog\/2019\/08\/22\/the-wolfe-waves-description-and-trading-strategy\/\">Wolfe&rsquo;s Waves<\/a> or <a href=\"https:\/\/roboforex.com\/blog\/2020\/05\/05\/how-to-trade-three-drive-three-indians-pattern\/\">Three Indians pattern<\/a>.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2021\/01\/merrills-technical-figures-arthur-a.-merrill-m3-w14.jpg\"><img loading=\"lazy\" decoding=\"async\" width=\"754\" height=\"300\" src=\"https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2021\/01\/merrills-technical-figures-arthur-a.-merrill-m3-w14.jpg\" alt=\"Arthur Merrill's patterns - M3 and W14\" class=\"wp-image-6727\" srcset=\"https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2021\/01\/merrills-technical-figures-arthur-a.-merrill-m3-w14.jpg 754w, https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2021\/01\/merrills-technical-figures-arthur-a.-merrill-m3-w14-360x143.jpg 360w\" sizes=\"(max-width: 754px) 100vw, 754px\" \/><\/a><figcaption class=\"wp-element-caption\">Arthur Merrill patterns - M3 and W14<\/figcaption><\/figure>\n\n\n\n<p>To set the goal, draw a line through the first low and the second high. As you see, it touches the descending support line, after which a reversal of the current trend is expected. The author notes that this is definitely a downtrend but not as strong as in M1.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"6-m4-and-w13\"><span class=\"ez-toc-section\" id=\"M4_and_W13\"><\/span>M4 and W13<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>This wave-like structure more reminds of the classical reversal pattern Inverted <a href=\"https:\/\/roboforex.com\/blog\/2019\/09\/16\/head-and-shoulders-pattern\/\" data-internallinksmanager029f6b8e52c=\"75\" title=\"Head and Shoulders\">Head and Shoulders<\/a> with the &ldquo;shoulders&rdquo; at more or less one level. Most often, traders buy from the right &ldquo;shoulder&rdquo;.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2021\/01\/merrills-technical-figures-arthur-a.-merrill-m4-w13.jpg\"><img loading=\"lazy\" decoding=\"async\" width=\"754\" height=\"300\" src=\"https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2021\/01\/merrills-technical-figures-arthur-a.-merrill-m4-w13.jpg\" alt=\"Arthur Merrill's patterns - M4 and W13\" class=\"wp-image-6728\" srcset=\"https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2021\/01\/merrills-technical-figures-arthur-a.-merrill-m4-w13.jpg 754w, https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2021\/01\/merrills-technical-figures-arthur-a.-merrill-m4-w13-360x143.jpg 360w\" sizes=\"(max-width: 754px) 100vw, 754px\" \/><\/a><figcaption class=\"wp-element-caption\">Arthur Merrill patterns - M4 and W13<\/figcaption><\/figure>\n\n\n\n<p>Note that in this case, the low is not renewed while the price breaks through the nearest high. To set the goal, we, again, measure the height of the pattern from the breakaway point on the &ldquo;neck&rdquo;.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"7-m5-and-w12\"><span class=\"ez-toc-section\" id=\"M5_and_W12\"><\/span>M5 and W12<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>M5 is an expanding formation on the price chart. The fluctuations of the pattern begin at their very start and increase to its end. As in the picture, the price, indeed, shows both new highs and lows. At the same time, the low is renewed, and the price bounces off upwards from the support line.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2021\/01\/merrills-technical-figures-arthur-a.-merrill-m5-w12.jpg\"><img loading=\"lazy\" decoding=\"async\" width=\"754\" height=\"300\" src=\"https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2021\/01\/merrills-technical-figures-arthur-a.-merrill-m5-w12.jpg\" alt=\"Arthur Merrill's patterns - M5 and W12\" class=\"wp-image-6729\" srcset=\"https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2021\/01\/merrills-technical-figures-arthur-a.-merrill-m5-w12.jpg 754w, https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2021\/01\/merrills-technical-figures-arthur-a.-merrill-m5-w12-360x143.jpg 360w\" sizes=\"(max-width: 754px) 100vw, 754px\" \/><\/a><figcaption class=\"wp-element-caption\">Arthur Merrill patterns - M5 and W12<\/figcaption><\/figure>\n\n\n\n<p>The aim of the growth can be on the line drawn through two highs. In classic tech analysis, this pattern is called an Expanding Formation or Expanding Triangle. Traders do not like this pattern because it is hard to trade, and <a href=\"https:\/\/roboforex.com\/blog\/2020\/08\/20\/what-is-volatility-and-how-to-use-it-on-forex\/\" data-internallinksmanager029f6b8e52c=\"150\" title=\"Volatility\">volatility<\/a> at its formation is high.<\/p>\n\n\n\n<div class=\"block-banner dark_blue-pink\">\n    <div class=\"block-banner__content\">\n      <div class=\"block-banner__text-content\">\n        <p class=\"block-banner__title\">Want to trade with the best conditions?<\/p>\n        <p class=\"block-banner__text\">Open a Prime account and enjoy fast execution, low commissions, and spreads from 0 pips<\/p>\n      <\/div>\n    <div class=\"block-banner__images-wrapper\">\n      <img decoding=\"async\" class=\"block-banner__image block-banner__image_mobile\" src=\"https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2023\/09\/prime-mobile.png\" alt=\"prime-account\">\n    <\/div>\n      <a href=\"https:\/\/my.roboforex.com\/en\/register\/prime\/\" class=\"block-banner__button\" target=\"_blank\" rel=\"noopener nofollow\">Open Prime Account<\/a>\n    <\/div>\n    <div class=\"block-banner__images-wrapper\">\n      <img decoding=\"async\" class=\"block-banner__image block-banner__image_desktop\" src=\"https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2023\/09\/prime-desktop.png\" alt=\"prime-account\">\n    <\/div>\n  <\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"8-m6-and-w11\"><span class=\"ez-toc-section\" id=\"M6_and_W11\"><\/span>M6 and W11<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The pattern reminds of an irregular Inverted Head and Shoulders pattern due to its &ldquo;neck&rdquo; being inclined upwards. In the classic pattern, the &ldquo;neck&rdquo; must go by the trend, which in this case is declining. However, in the current structure, we can suppose a descending Wolfe&rsquo;s Wave forming.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2021\/01\/merrills-technical-figures-arthur-a.-merrill-m6-w11.jpg\"><img loading=\"lazy\" decoding=\"async\" width=\"754\" height=\"300\" src=\"https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2021\/01\/merrills-technical-figures-arthur-a.-merrill-m6-w11.jpg\" alt=\"Arthur Merrill's patterns - M6 and W11\" class=\"wp-image-6730\" srcset=\"https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2021\/01\/merrills-technical-figures-arthur-a.-merrill-m6-w11.jpg 754w, https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2021\/01\/merrills-technical-figures-arthur-a.-merrill-m6-w11-360x143.jpg 360w\" sizes=\"(max-width: 754px) 100vw, 754px\" \/><\/a><figcaption class=\"wp-element-caption\">Arthur Merrill patterns - M6 and W11<\/figcaption><\/figure>\n\n\n\n<p>The author did not recommend buying by this pattern, though in most cases, the price is really going up. To set a goal, you can draw a line through two highs, which will be the point off which a bounce downwards is expected.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"9-m7-and-w10\"><span class=\"ez-toc-section\" id=\"M7_and_W10\"><\/span>M7 and W10<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The price structure of M7 is a Butterfly from harmonic trading by <a href=\"https:\/\/roboforex.com\/blog\/2019\/09\/20\/what-are-fibonacci-levels-how-to-use-them-on-forex\/\">Fibonacci levels<\/a>. In the case of the Merrill pattern, we do not add the levels, looking just at the chart instead. The aims are normally the first and second highs.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2021\/01\/merrills-technical-figures-arthur-a.-merrill-m7-w10.jpg\"><img loading=\"lazy\" decoding=\"async\" width=\"754\" height=\"300\" src=\"https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2021\/01\/merrills-technical-figures-arthur-a.-merrill-m7-w10.jpg\" alt=\"Arthur Merrill's patterns - M7 and W10\" class=\"wp-image-6731\" srcset=\"https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2021\/01\/merrills-technical-figures-arthur-a.-merrill-m7-w10.jpg 754w, https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2021\/01\/merrills-technical-figures-arthur-a.-merrill-m7-w10-360x143.jpg 360w\" sizes=\"(max-width: 754px) 100vw, 754px\" \/><\/a><figcaption class=\"wp-element-caption\">Arthur Merrill patterns - M7 and W10<\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"10-m8-and-w9\"><span class=\"ez-toc-section\" id=\"M8_and_W9\"><\/span>M8 and W9<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>M8 starts with a steep upwards movement, followed by a downward zigzag that does not renew the low, however. As soon as the price breaks through the high, we can be sure that the upwards movement continues. It slightly reminds us of the Head and Shoulders pattern.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2021\/01\/merrills-technical-figures-arthur-a.-merrill-m8-w9.jpg\"><img loading=\"lazy\" decoding=\"async\" width=\"754\" height=\"300\" src=\"https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2021\/01\/merrills-technical-figures-arthur-a.-merrill-m8-w9.jpg\" alt=\"Arthur Merrill's patterns - M8 and W9\" class=\"wp-image-6740\" srcset=\"https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2021\/01\/merrills-technical-figures-arthur-a.-merrill-m8-w9.jpg 754w, https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2021\/01\/merrills-technical-figures-arthur-a.-merrill-m8-w9-360x143.jpg 360w\" sizes=\"(max-width: 754px) 100vw, 754px\" \/><\/a><figcaption class=\"wp-element-caption\">Arthur Merrill patterns - M8 and W9<\/figcaption><\/figure>\n\n\n\n<p>However, to be confident with the structure, you need to see the movement on the left. When the right &ldquo;shoulder&rdquo; is much lower than the left one, this means that sellers are weak, and the price is likely to rise. To set the goal, measure the height of the pattern from the &ldquo;neck&rdquo;.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"11-m9-and-w8\"><span class=\"ez-toc-section\" id=\"M9_and_W8\"><\/span>M9 and W8<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In harmonic trading, M9 is called the Shark. It is an upward zigzag, followed by falling and a renewal of the low. As a rule, harmonic traders expect this point at 1.13% <a href=\"https:\/\/roboforex.com\/blog\/2019\/09\/20\/what-are-fibonacci-levels-how-to-use-them-on-forex\/\" data-internallinksmanager029f6b8e52c=\"78\" title=\"Fibo\">Fibo<\/a>. After such a decline, we can expect growth to the low lying between two highs. This will be the completion of the pattern.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2021\/01\/merrills-technical-figures-arthur-a.-merrill-m9-w8.jpg\"><img loading=\"lazy\" decoding=\"async\" width=\"754\" height=\"300\" src=\"https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2021\/01\/merrills-technical-figures-arthur-a.-merrill-m9-w8.jpg\" alt=\"Arthur Merrill's patterns - M9 and W8\" class=\"wp-image-6739\" srcset=\"https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2021\/01\/merrills-technical-figures-arthur-a.-merrill-m9-w8.jpg 754w, https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2021\/01\/merrills-technical-figures-arthur-a.-merrill-m9-w8-360x143.jpg 360w\" sizes=\"(max-width: 754px) 100vw, 754px\" \/><\/a><figcaption class=\"wp-element-caption\">Arthur Merrill patterns - M9 and W8<\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"12-m10-and-w7\"><span class=\"ez-toc-section\" id=\"M10_and_W7\"><\/span>M10 and W7<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>M10 also reminds of an erratic Inverted Head and Shoulders pattern where traders expect not a breakaway of the &ldquo;neck&rdquo; but a bounce off it. Or, this structure presumes the appearance of a descending Wolfe&rsquo;s Wave, in which case we also draw a resistance line through two highs and wait for the price to drop to it. To set the goal, draw a line through the first high and the low from which the price is going to grow.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2021\/01\/merrills-technical-figures-arthur-a.-merrill-m10-w7.jpg\"><img loading=\"lazy\" decoding=\"async\" width=\"754\" height=\"300\" src=\"https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2021\/01\/merrills-technical-figures-arthur-a.-merrill-m10-w7.jpg\" alt=\"Arthur Merrill's patterns - M10 and W7\" class=\"wp-image-6738\" srcset=\"https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2021\/01\/merrills-technical-figures-arthur-a.-merrill-m10-w7.jpg 754w, https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2021\/01\/merrills-technical-figures-arthur-a.-merrill-m10-w7-360x143.jpg 360w\" sizes=\"(max-width: 754px) 100vw, 754px\" \/><\/a><figcaption class=\"wp-element-caption\">Arthur Merrill patterns - M10 and W7<\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"13-m11-and-w6\"><span class=\"ez-toc-section\" id=\"M11_and_W6\"><\/span>M11 and W6<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>At the first sight, M11 looks similar to M10 and its counterparts from classic tech analysis, but in fact, M11 is the <a href=\"https:\/\/roboforex.com\/blog\/2021\/04\/12\/how-to-trade-by-5-0-pattern\/\" data-internallinksmanager029f6b8e52c=\"175\" title=\"5-0\">5-0<\/a> pattern from harmonic trading. As you see, the price shows a low, then grows significantly and corrects. Draw an ascending channel to see where the correction ends. If the price tests this border, we can be sure that the growth continues. The aim of the growth is a breakaway of the local high.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2021\/01\/merrills-technical-figures-arthur-a.-merrill-m11-w6.jpg\"><img loading=\"lazy\" decoding=\"async\" width=\"754\" height=\"300\" src=\"https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2021\/01\/merrills-technical-figures-arthur-a.-merrill-m11-w6.jpg\" alt=\"Arthur Merrill's patterns - M11 and W6\" class=\"wp-image-6737\" srcset=\"https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2021\/01\/merrills-technical-figures-arthur-a.-merrill-m11-w6.jpg 754w, https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2021\/01\/merrills-technical-figures-arthur-a.-merrill-m11-w6-360x143.jpg 360w\" sizes=\"(max-width: 754px) 100vw, 754px\" \/><\/a><figcaption class=\"wp-element-caption\">Arthur Merrill patterns - M11 and W6<\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"14-m12-and-w5\"><span class=\"ez-toc-section\" id=\"M12_and_W5\"><\/span>M12 and W5<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>This price movement is also described in harmonic trading in detail and called the Bat. The correction is to end at 88.6% Fibo. The aim of the growth is the first and second highs.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2021\/01\/merrills-technical-figures-arthur-a.-merrill-m12-w5.jpg\"><img loading=\"lazy\" decoding=\"async\" width=\"754\" height=\"300\" src=\"https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2021\/01\/merrills-technical-figures-arthur-a.-merrill-m12-w5.jpg\" alt=\"Arthur Merrill's patterns - M12 and W5\" class=\"wp-image-6736\" srcset=\"https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2021\/01\/merrills-technical-figures-arthur-a.-merrill-m12-w5.jpg 754w, https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2021\/01\/merrills-technical-figures-arthur-a.-merrill-m12-w5-360x143.jpg 360w\" sizes=\"(max-width: 754px) 100vw, 754px\" \/><\/a><figcaption class=\"wp-element-caption\">Arthur Merrill patterns - M12 and W5<\/figcaption><\/figure>\n\n\n\n<div class=\"block-banner\">\n    <div class=\"block-banner__content\">\n      <div class=\"block-banner__text-content\">\n        <p class=\"block-banner__title\">Experience better stock trading in the <span class=\"nowrap\">R StocksTrader<span> terminal!<\/span><\/span><\/p>\n        <p class=\"block-banner__text\">Real stocks, advanced charts, and a free trading strategy builder<\/p>\n      <\/div>\n    <div class=\"block-banner__images-wrapper\">\n      <img decoding=\"async\" class=\"block-banner__image block-banner__image_mobile\" src=\"https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2023\/09\/rst2-mobile.png\" alt=\"partner-programme\">\n    <\/div>\n      <a href=\"https:\/\/my.roboforex.com\/en\/register\/rtrader\/\" class=\"block-banner__button\" target=\"_blank\" rel=\"noopener nofollow\">Start Trading<\/a>\n    <\/div>\n    <div class=\"block-banner__images-wrapper\">\n      <img decoding=\"async\" class=\"block-banner__image block-banner__image_desktop\" src=\"https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2023\/09\/rst2-desktop.png\" alt=\"partner-programme\">\n    <\/div>\n  <\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"15-m13-and-w4\"><span class=\"ez-toc-section\" id=\"M13_and_W4\"><\/span>M13 and W4<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>M13 is the simplest Symmetrical Triangle. As a rule, such a pattern is broken away by the actual trend. Most often, traders start buying inside the pattern already and open new positions at the breakaway of the upper border of the pattern. The aim of the growth is the height of the Triangle measured from the breakaway point.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2021\/01\/merrills-technical-figures-arthur-a.-merrill-m13-w4.jpg\"><img loading=\"lazy\" decoding=\"async\" width=\"754\" height=\"300\" src=\"https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2021\/01\/merrills-technical-figures-arthur-a.-merrill-m13-w4.jpg\" alt=\"Arthur Merrill's patterns - M13 and W4\" class=\"wp-image-6735\" srcset=\"https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2021\/01\/merrills-technical-figures-arthur-a.-merrill-m13-w4.jpg 754w, https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2021\/01\/merrills-technical-figures-arthur-a.-merrill-m13-w4-360x143.jpg 360w\" sizes=\"(max-width: 754px) 100vw, 754px\" \/><\/a><figcaption class=\"wp-element-caption\">Arthur Merrill patterns - M13 and W4<\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"16-m14-and-w3\"><span class=\"ez-toc-section\" id=\"M14_and_W3\"><\/span>M14 and W3<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>M14 is very much like M9, but in his case, the price does not renew the low. We can also say that a Shark forms here. While in M9 we expect the price to bounce off 1.13%, in M14, the bounce should happen off 88.6% Fibo.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2021\/01\/merrills-technical-figures-arthur-a.-merrill-m14-w3.jpg\"><img loading=\"lazy\" decoding=\"async\" width=\"754\" height=\"300\" src=\"https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2021\/01\/merrills-technical-figures-arthur-a.-merrill-m14-w3.jpg\" alt=\"Arthur Merrill's patterns - M14 and W3\" class=\"wp-image-6734\" srcset=\"https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2021\/01\/merrills-technical-figures-arthur-a.-merrill-m14-w3.jpg 754w, https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2021\/01\/merrills-technical-figures-arthur-a.-merrill-m14-w3-360x143.jpg 360w\" sizes=\"(max-width: 754px) 100vw, 754px\" \/><\/a><figcaption class=\"wp-element-caption\">Arthur Merrill patterns - M14 and W3<\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"17-m15-and-w2\"><span class=\"ez-toc-section\" id=\"M15_and_W2\"><\/span>M15 and W2<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>M15 is very well described by Bryce Gilmore. He characterizes this one as the 1-1 pattern in a weak market because the price drops below the high. If the trend is strong, the correction might fail to reach the support level.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2021\/01\/merrills-technical-figures-arthur-a.-merrill-m15-w2.jpg\"><img loading=\"lazy\" decoding=\"async\" width=\"754\" height=\"300\" src=\"https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2021\/01\/merrills-technical-figures-arthur-a.-merrill-m15-w2.jpg\" alt=\"Arthur Merrill's patterns - M15 and W2\" class=\"wp-image-6733\" srcset=\"https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2021\/01\/merrills-technical-figures-arthur-a.-merrill-m15-w2.jpg 754w, https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2021\/01\/merrills-technical-figures-arthur-a.-merrill-m15-w2-360x143.jpg 360w\" sizes=\"(max-width: 754px) 100vw, 754px\" \/><\/a><figcaption class=\"wp-element-caption\">Arthur Merrill patterns - M15 and W2<\/figcaption><\/figure>\n\n\n\n<p>To find the point of the bounce upwards, try drawing an ascending channel. The aim of the growth here is the first movement from the low to the high that traders measure from the point of expected growth.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"18-m16-and-w1\"><span class=\"ez-toc-section\" id=\"M16_and_W1\"><\/span>M16 and W1<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>M16 is a wave-like analog of Gilmore&rsquo;s 1-1, only that it indicates a strong trend. Here, you can also draw an ascending channel and wait for its lower border to be tested, which will indicate further growth of the price. To set the goal, take the distance from the low to the first high and measure it from the point of expected growth.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2021\/01\/merrills-technical-figures-arthur-a.-merrill-m16-w1.jpg\"><img loading=\"lazy\" decoding=\"async\" width=\"754\" height=\"300\" src=\"https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2021\/01\/merrills-technical-figures-arthur-a.-merrill-m16-w1.jpg\" alt=\"Arthur Merrill's patterns - M16 and W1\" class=\"wp-image-6732\" srcset=\"https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2021\/01\/merrills-technical-figures-arthur-a.-merrill-m16-w1.jpg 754w, https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2021\/01\/merrills-technical-figures-arthur-a.-merrill-m16-w1-360x143.jpg 360w\" sizes=\"(max-width: 754px) 100vw, 754px\" \/><\/a><figcaption class=\"wp-element-caption\">Arthur Merrill patterns - M16 and W1<\/figcaption><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"19-summary\"><span class=\"ez-toc-section\" id=\"Summary\"><\/span>Summary<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Arthur Merrill showed a whole range of interesting patterns. These are, of course, not all of the patterns that exist but a large part of them. Some look classic, such as the Head and Shoulders or Triangle. Other patterns, such as the Wolfe&rsquo;s Waves, Butterfly, or Shark, were described later with many amendments by other authors.<\/p>\n\n\n\n<p>Some say that price patterns have worked and will keep working due to the psychology of market players only, who are propelled by greed and fear. Assets and markets can change &ndash; psychology remains.<\/p>\n\n\n\n<p>Merrill&rsquo;s patterns were described as long ago as 1980, and Triangles, regularly emerging in the relatively young market, only confirm that history repeats itself. For successful trading, you do not need to know all patterns, just two-three of them to be confident in any state of the market.<\/p>\n\n\n\n<p class=\"wp-block-button aligncenter\">\n<a class=\"button button-green\" href=\"https:\/\/my.roboforex.com\/en\/register\/\" rel=\"nofollow\">Open Trading Account<\/a><\/p>\n<\/body><\/html>\n","protected":false},"excerpt":{"rendered":"<p>Arthur A. Merrill\u2019s M and W patterns look like waves. There are 32 patterns, 16 of which have a unique structure. Some look like classic price patterns, have a clear structure and understandable identification rules.<\/p>\n","protected":false},"author":20,"featured_media":6724,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[29],"tags":[2304,226,2305,2306],"class_list":["post-6723","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-education","tag-arthur-merrill","tag-chart-pattern-analysis","tag-m-chart-pattern","tag-w-chart-pattern"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Arthur Merrill\u2019s Patterns: How to Trade M and W Trading Pattern<\/title>\n<meta name=\"description\" content=\"Trading Arthur Merrill&#039;s M and W patterns: exploring variations like M1-W16, M2-W15, and more.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/roboforex.com\/blog\/2021\/01\/25\/how-to-trade-arthur-a-merrills-m-and-w-patterns\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Arthur Merrill\u2019s Patterns: How to Trade M and W Trading Pattern\" \/>\n<meta property=\"og:description\" content=\"Trading Arthur Merrill&#039;s M and W patterns: exploring variations like M1-W16, M2-W15, and more.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/roboforex.com\/blog\/2021\/01\/25\/how-to-trade-arthur-a-merrills-m-and-w-patterns\/\" \/>\n<meta property=\"og:site_name\" content=\"RoboForex Blog\" \/>\n<meta property=\"og:image\" content=\"https:\/\/roboforex.com\/blog\/wp-content\/uploads\/2021\/01\/10.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1160\" \/>\n\t<meta property=\"og:image:height\" content=\"380\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Andrey Goilov\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"12 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/roboforex.com\/blog\/2021\/01\/25\/how-to-trade-arthur-a-merrills-m-and-w-patterns\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/roboforex.com\/blog\/2021\/01\/25\/how-to-trade-arthur-a-merrills-m-and-w-patterns\/\"},\"headline\":\"How to Trade Arthur A. 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