TA Challenge: Part 2 - Bollinger Bands: patterns

In the first part of the challenge, I discussed about the strategies of Bollinger Bands (BBs) above. Now I will discuss on Part 2- patterns. BBs are often used to identify W-Bottoms and M-Tops or to determine the strength of the trend.
Patterns
W-Bottom

There are 4 steps to confirm a W-Bottom with BBs. First, a reaction low forms. This low is usually, but not always, below the lower band. Second, there's a bounce towards the middle band. Third, there is a new or equal price low in the stock. This low holds above the lower band. The ability to hold above the lower band show less weakness on the last decline. Fourth, the pattern is confirmed with a strong move off the second low and a resistance break.
M-Top

M-Tops are essentially the opposite of W-Bottoms. Bollinger suggests looking for signs of non-confirmation (trend reversal) when a stock is making new highs. A non-confirmation occurs with 3 steps. First, a stock creates a reaction high above the upper band. Second, there's a pullback towards the middle band. Third, prices move above the previous high but fail to rise above the upper band. This is a warning sign. The inability of the second reaction high to exceed the upper band shows waning momentum, which can signal a trend reversal. Final confirmation comes with a support break or bearish indicator signal.
Reversals
W-Bottoms and M-Tops are common trend reversal patterns. Other types of reversal patterns are discussed here.

The price may rise above the upper band. The next day, a bearish engulfing candlestick formed with a closing price lower than the previous day. This signalled a trend reversal to bearish. You can take a short position with the middle band in mind. In mid-Mar, the stock made a low just below the middle band. The next day, a bullish engulfing candlestick was formed with the closing price above the previous day and back above the middle band. This signalled a trend reversal to bullish. You can buy with the upper band in mind.
This is the end of Part 2. Stay tuned for Part 3- Applications.