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W-Shaped Recovery

A W-shaped recovery is an economic cycle of recession and recovery that looks like the letter W on a chart. In a W-shaped recovery, price experiences a sharp decrease for an extended period of time, followed by a sharp rise to test some near resistance levels, a sharp decline to retest the recent lows, and then another sharp rise above the recent resistance levels. This back-to-back drop and bounce gives form to the W-shape pattern formation.


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