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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 Indicators

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Busted
Patterns
Candles Chart
Patterns
Event
Patterns
Small Patterns
Market
Industrials (^DJI):
Transports (^DJT):
Utilities (^DJU):
Nasdaq (^IXIC):
S&P500 (^GSPC):
As of 10/30/2014
17,195 221.11 1.3%
8,631 -83.83 -1.0%
596 12.24 2.1%
4,566 16.91 0.4%
1,995 12.35 0.6%
YTD
3.7%
16.6%
21.6%
9.3%
7.9%
Tom's Targets    Overview: 10/30/2014
17,500 or 16,700 by 11/15/2014
8,850 or 8,200 by 11/15/2014
600 or 560 by 11/15/2014
4,600 or 4,200 by 11/15/2014
2,000 or 1,900 by 11/15/2014

Written and copyright © 2008-2013 by Thomas N. Bulkowski. All rights reserved.

This page serves as the gateway to various indicators that I have tested. Below is the list. Yes, it's short because I don't use many indicators. When considering a trade, I will review the commodity channel index (CCI) and Wilder's relative strength index (RSI) plus Bollinger bands.

With CCI, it gives very short term trading signals and divergence. RSI also shows divergence and overbought/oversold signals. Those can be quite timely. Bollinger bands, when narrow, suggest a large price moving coming. That means higher volatility. Swings between bands also provide information, meaning that when price touches the top band, it may bounce off and toucher the lower one, and vice versa.

The chart pattern indicator, or CPI, provides market direction information. I find it best to trade with the trend and the CPI helps with that. If it signals green, I go long. If it signals red, I avoid taking on new, long positions and may take profits if the chart pattern indicator has just swung from buy (green) to sell (red).

 

  1. CPI location

    Chart Pattern Indicator. Invented by Thomas Bulkowski, the indicator does a very good job at predicting market turns, but it has several days of lag. Thus, the indicator is best used as a weekly signaling device only. The current reading of the indicator can be found on the home page, above Weekly Updates, near the upper left of the page (see the image, as 'Market outlook...') or on most other website pages (as 'CPI...').

  2.  

  3. Wilder's relative strength index. The page discusses the RSI and tunes the parameters for stocks. The best results come from threshold settings of 20 and 80 with 16 day look back for buys and 14 day look back for sales. Review the tests and pick your own settings.

-- Thomas Bulkowski

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Copyright © 2008-2013 by Thomas N. Bulkowski. All rights reserved. Your momma is so fat that when she dances, she makes the band skip.