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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

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Bulkowski's Best Chart Patterns

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Busted
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Patterns
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Market
Industrials (^DJI):
Transports (^DJT):
Utilities (^DJU):
Nasdaq (^IXIC):
S&P500 (^GSPC):
As of 01/13/2017
19,886 -5.27 0.0%
9,202 57.87 0.6%
657 -0.99 -0.2%
5,574 26.63 0.5%
2,275 4.20 0.2%
YTD
0.6%
1.8%
-0.4%
3.5%
1.6%
Tom's Targets    Overview: 12/30/2016
19,250 or 20,250 by 01/15/2017
8,880 or 9,550 by 01/15/2017
625 or 690 by 01/15/2017
5,650 or 5,400 by 01/15/2017
2,350 or 2,240 by 01/15/2017
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.

 

 Pattern: Up Breakouts  1 Month
Gain 
 2 Month
Gain 
 3 Month
Gain 
High and tight flags22%21%21%
Eve & Eve double bottom9%12%13%
Scallop, ascending and inverted11%12%13%
Rectangle Bottom8%11%14%
Adam & Adam double bottom7%10%12%
Adam & Eve double bottom7%10%10%
Eve & Adam double bottom7%10%14%
Falling wedge8%10%9%
Rounded top7%10%14%
Flag8%9%7%
 Pattern: Down Breakouts  1 Month
Loss 
 2 Month
Loss 
 3 Month
Loss 
Complex head-and-shoulders top-8%-10%-10%
Head-and-shoulders top-7%-8%-7%
Diamond top-8%-7%-6%
Diamond bottom-10%-5%-4%
Scallop, descending-6%-5%-4%
Adam & Adam double top-6%-4%-3%
Right-angled and descending broadening formation-5%-4%0%
Rounded top-6%-4%-4%
Scallop, descending and inverted-4%-4%-4%
Triangle, descending-5%-4%-3%

The table shows the best performing chart patterns for upward breakouts (top half) and downward breakouts (bottom half), sorted by the 2 month's performance.

I scanned my database of chart patterns (the popular ones) and found over 30,000 samples. Then I measured the price move 1, 2, 3 and 6 months after the breakout. However, I show only a maximum of 3 months in the table.

This measurement technique is different than the one I used in my books. There, I measured the move assuming a perfect trade, from breakout to ultimate high or low (after which price dropped or rose by at least 20%).

This table is just another way of slicing the same information. However, it does contain surprises.

Notice that the cup with handle doesn't appear in the list. That's because performance is poor -- it ranked 11th, so it didn't make the top 10.

Click on the associated link for more information about a chart pattern.

-- Thomas Bulkowski. Donate now to keep this website free.

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See Also

  • Alphabetical list of chart pattern performance, by rank.
  • Failures of chart patterns sorted by breakeven failure rate rank.
  • Performance of chart patterns, sorted by average rise or decline rank.
  • Alphabetical list of event pattern performance, by rank.
  • Failures of event patterns sorted by breakeven failure rate rank.
  • Performance of event patterns, sorted by average rise or decline rank.
  • Best buy price. The best buy price is $20 or below.
  • The best performing chart patterns over 1, 2, and 3 months.
  • Failures. Which months show the most failures?
  • Failure rates. Chart patterns fail more often than before.
  • Best buy days. Which day of the week is the best one to buy or sell?
  • Best buy months. Can buying at the end of the worst performing month and selling at the best performing be profitable?
  • Seasonality. What are the best months to buy and sell stocks?

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. Sad case: two dozen empties.