Subscribe to RSS feeds Bulkowski Blog via RSS

Thomas Bulkowski’s successful investment activities allowed him to retire at age 36. He is an internationally known author and trader with 30+ years of stock market experience and widely regarded as a leading expert on chart patterns. He may be reached at

Support this site! Clicking the links (below) takes you to Amazon.com. If you buy ANYTHING, they pay for the referral.

Picture of the head's law.
Kindle
Paperback
Nook
Chart Patterns: After the Buy
Getting Started in Chart Patterns, Second Edition book.
Trading Basics: Evolution of a Trader book.
Fundamental Analysis and Position Trading: Evolution of a Trader book.
Swing and Day Trading: Evolution of a Trader book.
Visual Guide to Chart Patterns book.
Encyclopedia of Chart Patterns 2nd Edition book.

Bulkowski’s 10 New Price Lines

Class Elliott Wave Fundamentals Psychology Quiz Research Setups Software Tutorials More...
Busted
Patterns
Candles Chart
Patterns
Event
Patterns
Small Patterns
Market
Industrials (^DJI):
Transports (^DJT):
Utilities (^DJU):
Nasdaq (^IXIC):
S&P500 (^GSPC):
As of 01/20/2017
19,827 94.85 0.5%
9,225 60.61 0.7%
658 0.48 0.1%
5,555 15.25 0.3%
2,271 7.62 0.3%
YTD
0.3%
2.0%
-0.2%
3.2%
1.5%
Tom's Targets    Overview: 01/18/2017
19,250 or 20,250 by 02/01/2017
8,800 or 9,500 by 02/01/2017
685 or 630 by 02/01/2017
5,700 or 5,400 by 02/01/2017
2,200 or 2,350 by 02/01/2017
Indus strength: None YTD
Mutt Losers: None YTD
Mutt Winners: None YTD

Written by and copyright © 2005-2017 by Thomas N. Bulkowski. All rights reserved. Disclaimer: You alone are responsible for your investment decisions. See Privacy/Disclaimer for more information.

My book, Encyclopedia of Candlestick ChartsEncyclopedia of Candlestick Charts book., pictured on the left, takes an in-depth look at candlesticks, including performance statistics.

If you click on this link and then buy the book (or anything) at Amazon.com, the referral will help support this site. Thanks. -- Tom Bulkowski

$ $ $

The 10 new price lines candle pattern is as it sounds: ten candle lines in a row, each with a high higher than the previous one. It is supposed to act as a bearish reversal and it does, but only 51% of the time in a bull market. That is about random. In a bear market, it acts as a continuation pattern, too.

Overall performance ranks 100th out of 103 candle patterns and that isn't good. It suggests the trend after the breakout is short lived.

10 New Price Lines Important Results

Theoretical performance: Bearish reversal
Tested performance: Bearish reversal 51% of the time
Frequency rank: 69
Overall performance rank: 100
Best percentage meeting price target: 93% (bear market, down breakout)
Best average move in 10 days: -1.95% (bear market, down breakout)
Best 10-day performance rank: 83 (bear market, down breakout)

All ranks are out of 103 candlestick patterns with the top performer ranking 1. "Best" means the highest rated of the four combinations of bull/bear market, up/down breakouts.

The above numbers are based on hundreds of perfect trades. See the glossary for definitions.

The ideal 10 new price lines candlestick
10 New Price Lines
Top of page   More

10 New Price Lines Discussion

The 10 new price lines act as a bearish reversal both in theory and reality but just barely. Price reverses just 51% of the time. That is really random because you will not be able to say with any certainty that price will reverse. What’s worse, is the overall performance rank: 100 where 103 is worst and 1 is best. Yuck.

With the new lines candles, 8, 10, 12 and 13, I determine the breakout direction using the last candle line in the pattern. A close above the top or a close below the bottom of it would constitute an up or down breakout, respectively. The measure rule (percentage meeting price target) is based on taking the height of the move from the first to last candle in the pattern and dividing by 6 for upward breakouts or 3 for downward breakouts. The reason for this is because the pattern can be quite tall and using the full height would set an almost impossible target.

Price meets the target after a downward breakout in a bull market 93% of the time. The best average move 10 days after a breakout is a drop of just 1.95% in a bear market. A good move would be a drop of 6% or more, so this falls short. The ranking of the decline is 83, well behind the first place rank of 1.

10 New Price Lines Identification Guidelines

CharacteristicDiscussion
Number of candle linesTen.
Price trend leading to the patternNone required.
ConfigurationLook for ten consecutive candle lines, each with a higher high.
Top of page   More

Three Trading Tidbits for 10 New Price Lines

If you want a few bones from my Encyclopedia of candlestick charts book, here are three to chew on. The pages refer to the book where the tips appear.

  1. 10 new price lines candles that appear within a third of the yearly low perform best for upward breakouts -- page 40.
  2. 10 new price lines acting as reversals occur most often within a third of the yearly low -- page 44.
  3. Volume gives performance clues -- page 42.

The 10 new price lines candlestick on the daily scale

10 New Price Lines Example

The chart shows the 10 new price lines candlestick pattern on the daily scale, points 1 through 10. Since price continues higher, it also shows 12 and 13 new price lines candlesticks as well as the 8 line variety. Notice how none of them act as reversal patterns either. Price just keeps moving up until day 15. After that, price drops, but only for a few days before the uptrend continues.

Based on this chart, and many others like it, to say that price will reverse after 8, 10, 12 or 13 days of higher highs is just guessing. If that were the case, then there would be no 12 or 13 new price lines candle patterns.

 

-- Thomas Bulkowski

Top of page   More  

See Also

Written by and copyright © 2005-2017 by Thomas N. Bulkowski. All rights reserved. Disclaimer: You alone are responsible for your investment decisions. See Privacy/Disclaimer for more information. Constipation cause people not to give a crap.