As of 04/25/2019
Industrials: 26,462 -134.97 -0.5%
Transports: 10,846 -253.37 -2.3%
Utilities: 780 +3.53 +0.5%
Nasdaq: 8,119 +16.67 +0.2%
S&P 500: 2,926 -1.08 0.0%
|
YTD
+13.4%
+18.3%
+9.5%
+22.4%
+16.7%
|
 26,900 or 25,500 by 05/01/201911,200 or 10,500 by 05/01/2019825 or 755 by 05/01/20198,250 or 7,850 by 05/15/20192,975 or 2,800 by 05/01/2019 |
As of 04/25/2019
Industrials: 26,462 -134.97 -0.5%
Transports: 10,846 -253.37 -2.3%
Utilities: 780 +3.53 +0.5%
Nasdaq: 8,119 +16.67 +0.2%
S&P 500: 2,926 -1.08 0.0%
|
YTD
+13.4%
+18.3%
+9.5%
+22.4%
+16.7%
|
|
26,900 or 25,500 by 05/01/201911,200 or 10,500 by 05/01/2019825 or 755 by 05/01/20198,250 or 7,850 by 05/15/20192,975 or 2,800 by 05/01/2019 | |
If you have been around chart patterns long enough or are widely read in the subject, you may have heard of the 2B pattern. It is less a pattern than it is a way for swing traders to take profits.
However, my book,
Fundamental Analysis and Position Trading
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
Updated to site format: 3/16/19.
Victor Sperandeo in his book,
Trader Vic--Methods of a Wall Street Master
In an uptrend, if a higher high is made but fails to carry through, and then prices drop below the previous high, then the trend is apt to reverse. The converse is true for down trends. This observation applies in any of the three trends; short-term, intermediate-term, or long-term.A 2B on a minor high or low will usually occur within one day or less of the time the high or low is made. For 2B's on intermediate highs or lows preceding a correction, the new high or low point will usually break within three to five days. At major market turning points, long-term 2B's, the new high or low will usually break within seven to ten days. In the stock market, after the new high is made, the failure to carry forward usually occurs on low to normal volume, and the confirmation of a reversal occurs on higher volume.
I prefer to think of a 2B as one in which price begins to form a double top. It may not confirm as a double top (meaning that price may not close below the price of the valley between the two peaks) but price exceeds the level of the first top and then reverses.
Let's look at a chart example. I show Omnicom Group (OMC) in late 2016 on the daily scale. Price rises in a strong upward trend (red line A) to peak B.
The stock retraces a good portion of the move up (that is, it drops and forms the valley between peaks BC).
Price rises again and forms peak C. The horizontal blue line shows that the stock has risen above the prior peak (B) to make a new high at C.
Then the stock drops to D (so far), leaving behind another peak (C).
Peak C is a 2B pattern.
-- Thomas Bulkowski
If you buy ANYTHING while there, they pay for the referral.
There are two types of people: those who divide people into two types, and those who don't.
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