As of 08/20/2019
  Indus: 25,962 -173.35 -0.7%  
  Trans: 10,006 -75.35 -0.7%  
  Utils: 834 -1.95 -0.2%  
  Nasdaq: 7,949 -54.25 -0.7%  
  S&P 500: 2,901 -23.14 -0.8%  
YTD
 +11.3%  
 +9.1%  
 +17.0%  
 +19.8%  
 +15.7%  
  Targets    Overview: 08/15/2019  
  Up arrow27,200 or 24,900 by 09/01/2019
  Up arrow10,700 or 9,550 by 09/01/2019
  Up arrow850 or 790 by 09/01/2019
  Up arrow8,200 or 7,400 by 09/01/2019
  Up arrow3,000 or 2,750 by 09/01/2019
As of 08/20/2019
  Indus: 25,962 -173.35 -0.7%  
  Trans: 10,006 -75.35 -0.7%  
  Utils: 834 -1.95 -0.2%  
  Nasdaq: 7,949 -54.25 -0.7%  
  S&P 500: 2,901 -23.14 -0.8%  
YTD
 +11.3%  
 +9.1%  
 +17.0%  
 +19.8%  
 +15.7%  
  Targets    Overview: 08/15/2019  
  Up arrow27,200 or 24,900 by 09/01/2019
  Up arrow10,700 or 9,550 by 09/01/2019
  Up arrow850 or 790 by 09/01/2019
  Up arrow8,200 or 7,400 by 09/01/2019
  Up arrow3,000 or 2,750 by 09/01/2019

Bulkowski's 10 New Price Lines

 

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

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-- Tom Bulkowski

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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.

Important Results
Discussion
Identification Guidelines
Three Trading Tidbits
Example
See Also

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
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10 New Price Lines Discussion

The 10 new price lines candle pattern acts 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.
 
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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

 

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Chart Patterns: After the Buy Getting Started in Chart Patterns, Second Edition Trading Basics Fundamental Analysis and Position Trading Swing and Day Trading Visual Guide to Chart Patterns Encyclopedia of Candlestick Charts Encyclopedia of Chart Patterns 2nd Edition Trading Classic Chart Patterns

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