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Patternz is a Windows based program that automatically finds chart patterns. It has these features.
- Finds 79 chart patterns (see Patterns Form). New in version 7 (up from 32)
- Finds 105 candlestick patterns (see Candles Form)
- The Fib Finder located Fibonacci retraces and extensions, new to version 6.8.
- The Fix Split form corrects data for splits, new to version 6.8.
- Has a manual scoring form which supports 45 chart patterns, new to version 6.6.
- A relative strength form provides help for momentum traders. New to version 6.3
- Supports 5 quote services as of version 6.3
- Has a automatic scoring form to pick the best performing chart patterns, as of version 6.1.
- Has a split/divs form to show stock splits and dividends, as of version 6.1.
- Version 6.0 (and more recent) is easier to use than prior versions.
- Supports multiple portfolios, new to version 5.9
- Has the chart pattern indicator, new to version 5.8
- Built-in downloader so you can update quote information from this program, new to version 5.4.
- The Chart Form reports this information for chart patterns.
- Name of the chart pattern, highlighted in red when selected
- Pattern start and end dates
- Breakout direction and breakout date
- Price target (based on the height of the pattern) and percentage move
- Target information (target, stop loss, ultimate high/low, confirmation line), new to version 7
- Volatility stop price and percentage move as of the day before the breakout
- Trade status (the date and price when the stock hit the price target or stop)
- Right mouse clicking shows the price information for the price bar.
- Right mouse button down and drag draws a trendline
- Left mouse button down shows crosshairs
- The Chart Form reports this information for candlestick patterns.
- Name of the candlestick
- Candle start and end dates
- How the candle typically performs (such as a "bullish reversal 53% of the time")
- The List Form reports the same information as described above but also includes the ultimate high and low dates and prices. See the glossary for definitions.
- List form finds and lists chart and candlestick patterns for use by Excel and other programs.
- Improved pattern recognition algorithms, improved in version 7.
- Tool tips and help buttons provide instant help. No need to dig through an instruction manual.
- Adware and spyware free
- It's FREE with no registration.
Patternz Release Notes, Old Versions
Patternz: Known Bugs
As of version 7 4/18/18: On the List Chart Form, some chart patterns may not be displayed. I researched this for several hours before giving up. It's a problem with how trendlines are selected.
If you want to see the pattern, try adjusting the end date by a month or so (shorter or longer) and clicking Graph. It should appear, if not pick another end date.
I don't intend to fix this because it's not a big problem and would require a replacement of a key routine affecting too many patterns.
Patternz: Installation Instructions
Follow these instructions to install Patternz.
- Use the control panel to uninstall any old versions of Patternz.
- Download Patternz to your machine by clicking the link at the top of this page (See Download Now).
- Extract all files from the compressed folder and put them in a location of your choice. Note: MMM.csv is a sample data file containing stock quote information that Patternz can read.
- Run setup.exe.
- Once installation completes, there should be a Patternz short cut on your desktop. Click that to run the program.
Versions 5.x (and more recent) of Patternz should work with Windows 7 and more recent operating systems. Patternz works on computers with a minimum screen size of 1024 x 768.
This version works best in the United States and for countries that use a similar date format. If your country has a different way of treating numbers (instead of 43.57, it's 43,57 for example)
or if your country trades on the weekend (Saturday or Sunday), then it might not work. Try it and see.
If you still want to use it despite a different format, then find the International settings ("Clock, Language, and Region") in the control panel and set your Formats (tab)
and Location (tab) to the United States. You'll need both the format and location.
Using Patternz the First Time
To use Patternz the first time, follow these instructions.
- The first time you run Patternz, a license form will appear. Read the form and click that you accept or reject the terms. Click the Done button.
- If you accept the terms, a message box appears that talks about the stock data files. Click OK.
- The Browse For Folder dialog box appears. Select the location where you have placed your stock quote files or where you intend to place them. Let's call
the location you select the Patternz Folder.
- Move the MMM.csv file from the extracted folder (see Installation Instructions above) to the Patternz folder. The MMM.csv file contains sample stock
data which Patternz can use to find chart patterns. You do NOT have to move the file, but it's helpful if Patternz has at least one stock file to use.
- After you click OK from the Browse For Folder, the Main Form appears. If you have stock data files, they will appear in the list box. If you HAVE data files but they
do not appear in the list, then click the Browse Portfolio Location button to locate your data files. Only files with .csv or .txt extensions will appear in the list.
If you moved MMM.csv to the Patternz folder, it should be listed. Metastock, Mt4, or other file types are not supported.
- If you do NOT have any stock data files, then click Update and read the instructions (below) for that form to download quote files.
- Return to the Main Form.
- Select a stock symbol listed and click Chart. Patternz will read the file and display it with patterns highlighted on the Chart Form.
Update Form: No Internet Access
If you are using the Update Form to get quotes and it reports that the internet may be unavailable, then check your anti-virus/security software. It may be blocking
Patternz's access to the internet.
Update Form: Cannot Download Anything
You have internet access and you've tried all of the quote providers, but still Patternz won't download anything. One user had that problem.
Delete Patternz from the registry by following the steps here.
Update Form: Update Errors
If Patternz cannot update a quote file, it is placed in the Retry list box. Select another quote provider, click Retry, and see if you can download the symbol.
If you are downloading a lot of files (such as most of the market), be aware that stock symbols change from time to time. It's possible that you'll need to change or delete the
stock symbol.
To change a symbol, on the Update or Main Forms, click the symbol you wish to change and click F2 on your keyboard. Change the symbol's name and click OK.
To delete a symbol, on the Update or Main Forms, click the symbol and press Delete on your keyboard and then click OK. WARNING: This will delete the associated symbol file.
Chart Form: Quote Errors
The program will check for bad quotes, such as the high price being reported as below the low price or the opening price is zero. It counts these errors and reports them on
the clipboard. So if you are using the Chart Form, for example, and see quote errors, paste the clipboard information into notepad.exe or other program and read what it says.
If you see a lot of quote errors, then that's a symptom of a corrupt file. See Step 2.
It's also possible that you have received bad quote information. The quote providers (Google, yahoo, and so on) distribute incorrect quote data from time to time, so seeing quote
errors is not unusual. You may wish to select another quote provider and use the 'Get historical quotes' option to replace your quote files. See Step 2.
Chart Form: Chart Looks Wrong
1. If you chart a symbol and the chart looks incorrect (you can use Bigcharts.com or
another online source to compare charts), then the symbol file(s) might be corrupt. This
can happen if you didn't replace your quote files when switching to a new version from one before 6.0.
2. To replace bad or corrupted quote files, go to the Update form, click Select All (to highlight all quote files), click 'Get historical quotes', fill in the
'From' and 'To' dates (a two-year span works well. Longer files can slow the program) and then click Start*. The files will be replaced.
*Make sure you replace all quote files. If you have multiple portfolios, then click 'Update All Portfolios' instead of Start.
3. If you see lots of quote errors, then that's another symptom of a corrupt file. See the prior step to replace your quote files. However, read Quote Errors
first.
General
- Remove any .txt or .csv files from the folder where your quote files reside. For example, if you have the 'READ ME.txt' file left over from installation in the folder
where you keep the symbol files, then either move or remove that txt file. Otherwise, the program will think it's a symbol and try to use it, causing an error.
- Most users can use the Update Form now without any need to use the File Format Form. If you provide your own quote files (such as csv (ASCII) files through Metastock) then use the File Format Form
to setup the symbol file configuration. Do NOT use the Update form.
For everyone else, use the Update Form and do NOT use the File Format Form.
Switching from using the File Format Form to the Update Form, or the reverse (Update to File Format), will likely cause problems or even a crash.
Help
Most forms have a Help button, so click that and read the information.
Take the Tour and learn about the program's features.
When All Else Fails
If nothing else works, delete Patternz from the registry and run the program again. To do that, follow these steps.
- Run Patternz and go to the Main Form (the first form that loads)
- Click the Help MENU option
- Click Remove Patternz
- Click Delete Patternz from Registry
- Click Yes
- Exit the program and then run it again. See if that corrects the problem.
Once Patternz is setup, select stock files you wish to view and click the Chart button to view them.
On the chart form, when using the chart,
- Depressing the left mouse button will show crosshairs as long as the button is pressed.
- Right clicking on a price or volume bar will show price or volume information for that date. The price information will be adjusted for splits and dividends but not the volume bars.
- Right clicking the white area (that is, NOT on a price or volume bar) and dragging the mouse will draw a trendline until you release the button or go off the chart. Cool, huh?
- Pressing the + or - keys in the number pad area (not the area where $ % ^ and such are located) of your keyboard will load the next (+) or previous (-) stock file.
On the Main and Update Forms, highlight a stock symbol in the list box. Press the Delete key to remove both the symbol and the associated stock file from your computer. Press F2 to rename a symbol.
The picture on the right shows the Main Form of Patternz as of version 7.
The white area (1) lists your stock quote files. Each file contains quote information about ONE stock that the program uses. You must provide the stock symbols of your choice.
The Browse Portfolio Location button at 2 helps locate data files shown in 1. The selected path appears at 5.
The menu bar (3) shows:
- Exit to quit the program.
Analyze for fundamental analysis. Note: This was removed as of version 7 because yahoo stopped supporting fundamental information.- Candles selects candlesticks you wish to find.
- Fib: Fibonacci finder (retraces and extensions).
- File Format to setup the format of your data files (needed only for advanced users).
- Manual Score to manually score a chart pattern for performance.
- Patterns selects chart patterns you wish to find.
- Rel Strength (relative strength) helps you select stocks with increasing momentum.
- Splits/Divs gives information on stock splits and dividends.
- Fix Split: Corrects any bogus splits.
- Help contains additional information about the program, reviewing the license, main form help, and removing the program.
When checkbox 6 is checked, the portfolio feature (4) appears. This allows you to setup multiple portfolios to contain different stock symbols (quote files). Click the Help button (7) for more information.
The buttons below 2 (clockwise from left): Indicator runs the chart pattern indicator, Score (automated scoring, removed from version 7 because of yahoo lack of support) helps select the best performing chart patterns, Select All highlights all files listed in 1, Chart the files, List found patterns, and Update stock quote data.
After highlighting stock quote symbols in 1, the buttons below 2 will ungray as will menu items.
Patternz: Fib Finder Form
The Fib Finder Form is new to version 6.8. It allows you to search files for Fibonacci retraces and extensions.
Access this form after selecting files you wish to search on the Main Form. That will ungray the menu item and clicking on the item will take you to this form.
Click the Help button on the form for specific instructions.
Patternz: File Format Form
NOTE: This form is no longer needed. Ignore it. I show it here only for advance users, ones not using the Update Form to update their quote files.
Shown on the right is a reduced version of the File Format Form as of version 6.5.
Access this form from the Main Form (See File Format menu option).
This form allows you to tell Patternz which quote items appear first, second, and so on, in your data files.
The form provides a small chart (1) to see if your configuration is charting properly, a list of files to chart (2), sample file contents (3), a grid of file information (4), and an area to configure your data files (5, 6).
Keep in mind that each file MUST have the same format. So if you change quote providers, you should also replace ALL of your quote files. Failure to do so will likely cause errors in Patternz operation.
For detailed help with this form, click the Help button on the form.
To use this form, setup the column order by checking the appropriate check box in 5 and assigning the column number matching
the order shown in 3. Adjust the date format (6) to match that shown in 3. When you're finished, click Graph and the results will appear in 1 and 4.
For example, the first line of 3 shows that the date comes first, so the Column Order's Date text box (5) has a 1 in it. The next column in 3 shows the
opening price. In 5, check the Open check box and enter a 2 in the Open text box. Similarly, continue assigning a column to each
of the items in 5 matching those in 3. If 3 has a column not matching a control in 5, then be sure to adjust the column order
appropriately.
For example, say the first line of 3 shows: "Date,Split Factor,High,Low,Close,Dividends." In 5, set Date to column 1, High to column 3 (not 2, because
Split Factor appears in column 2), Low to column 4, and Close to column 5. All other check boxes should be unchecked and the associated text boxes should have a 0 column number (0 means unused).
You would ignore both Split Factor and Dividends in 3 because there is no matching control in 5.
Patternz: Candles Form
Full candlestick support appears starting in version 5.2.
The above form shows the number of candlestick patterns supported (105).
On the Chart Form, hovering over a price bar will cause Patternz to run candlestick recognition. The results of what it finds appears on the chart form.
The List Form will report the candlesticks found on the specified end date (only), too.
Both of those forms depend on this form to identify which candlesticks you wish to search for.
Patternz: Patterns Form
This form allows you to select the chart patterns you wish to view.
You can access this form from the Main Form, Chart Form, or List Form.
Checking the associated chart pattern means Patternz will search for that pattern in your data files.
The controls are self-explanatory, but you can hover your mouse over the buttons for specific help.
Patternz: Chart Form
Pictured above is a reduced version of the Chart Form as of version 6.8. Patternz charts your stock data and searches for chart patterns and candlesticks.
This pic might look busy, but I wanted to show use of the new Fib button.
Right mouse click on two price bars (major turning points, shown on the chart as little red circles), click the Fib button (lower right of form), and a message box appears (5)
as well as the horizontal red lines (6) showing the retraces and extensions. It's that easy. To erase the lines, click the Graph button.
Shown (1) are a few of the chart patterns (I turned on only a few) it found in 3M corporation stock (a rising wedge on the left, triple top partially hidden by the message box to the right of it,
and head-and-shoulders on the upper right).
Along the bottom left of the form appears a grid (2) which displays information about each chart pattern (expanding the form to full size reveals more of the grid).
To the right of that is where candlestick information appears (3) when you hover the mouse over an identified candlestick.
Most of the controls at 4 are self-explanatory except for these.
- Check or uncheck the Strict checkbox to find patterns and candlesticks using strict or loose rules.
- The Skip check box will skip any chart not finding a pattern you're looking for. For example, suppose you wish to view all double bottoms
in 400 stocks. On the Patterns form (click the Patterns button), select double bottoms (ONLY) and return to the chart form. Check the Skip check box. Click the next button (>) to view the next chart
which shows a double bottom. The program will automatically skip charts in which double bottoms do not appear. This feature allows you to fly through the charts, stopping only at patterns of interest.
You may wish to run the scan again after toggling the state of the Strict check box (run through the stocks with Strict checked and another scan with it unchecked).
- Use the Symbol text box to chart a specific symbol. Note: You must have the data for that symbol already available.
- Finding and Loading are progress bars for finding patterns and loading stock symbols.
- The Setup button allows you to change the behavior of the program, including adding a moving average, changing colors of the candlesticks or chart background, and so on.
- Click the Portfolio button to change to another portfolio.
Patternz: List Form
The picture shows the List Form (version 5.25 shown).
From the main menu, select the stock symbols you wish to search and then click the List button. The List Form appears.
After you click the Start button, the program will load each file and search for chart patterns and candlesticks. If it finds any, they will appear in the list, similar to that shown.
Click the Help button on the form for additional help.
Patternz: Update Form
WARNING: The first time I ran this version, it appeared to hang my machine. About 2 minutes after running the thing, my
virus software popped up and said Patternz was trying to access the internet. Duh. I approved the access and it's worked fine since.
The picture shows the Update Form, as of version 6.6
From the main menu, click the Update button to get here. The Update Form appears.
Here are brief descriptions of the controls.
- This is where your stock (symbol) files, if any, will appear. Highlight the files you wish to update and click Start (7).
- Start from last update: This option updates your quote files starting from the day after the last quote. If the markets are open, updating ends with the prior day. If the markets
are closed and data is available, the current day's quotes are included. Thus, you should wait a few hours for end of day data to be available.
Get historical quotes: This option replaces your quote files with new data. Specify the date range (6), any new symbols (5), and click Start (7). Use this option to keep your
quote files short. I recommend 2 years of data which will keep load and processing speed tolerable.
- Select your quote provider. The ? buttons provide more information about some providers.
- API key/Token: Some quote providers need an API key or token. Paste the token in the box provided (it will not be grayed for those services requiring a token, so click
Alpha Vantage, Quandl, or Tiingo (3) first). If you are using Quandl, select the database (Quandl DB) you wish to use. WIKI is for US stocks.
- For historical quotes files only, enter a list of new symbols (5) you wish added to the list box (1). Separate each symbol with a space. If the text box is grayed, then click the Get
historical quotes radio button.
- For historical quotes only, enter the start and end dates of the historical data you wish to download. To keep the program working fast, I suggest a maximum of about two years of data.
- The Update All Portfolios button updates stocks in each portfolio automatically. The Browse button allows you to find existing quote files. The Stop button halts a
download. The Start button begins a download. Select All highlights files shown in the list box (1). Help provides help for the form (as does hovering the mouse over a
control). The Done button returns the program to the Main Form.
- This is the retry list box, new to version 6. If a symbol is not updated by a quote provider, it will be placed here. Select a new quote provider, highlight the symbols in the retry list box
you'd like updated, and click the Retry (3) button. The highlighted symbols will be sent to the new quote provider for update. Continue this procedure until all symbols in the retry list box have been removed. Note: if an unusual number of symbols appear in the retry list box, then it's possible that the day's quotes are not available by the quote provider. Sometimes, it'll take until the next day for quote information to become available.
New to version 6.6 is the Auto retry check box (also located near 3). Checking this will instruct the program to automatically retry the various quote providers should any quote
files still need updating. It works best if you have provided tokens for the various quote providers otherwise they will be skipped.
- Error messages appear here.
Patternz: Chart Pattern Indicator
The picture shows the Chart Pattern Indicator Form (most of it, anyway), new to version 5.8 (version 5.15 shown).
From the main menu, highlight the files you wish to include in the indicator analysis. The index file you choose later (see 2 below) will be excluded from the analysis automatically. Often
you can just click the Select All button on the main form to highlight all files.
Click the Indicator button to take you to this form.
1. This is where the program draws the index (candlestick chart) and chart pattern indicator (the long, vertical, red (bearish signal) and green (bullish signal) bars plus the
wavy blue line, which is the indicator).
2. Controls:
- Specify the from and to dates that you wish to examine.
- The radio buttons give charting options, such as show when a signal changes from red to green (or green to red), show all signals, or don't show signals.
- Enter the symbol for the index of your choice in the Index text box. This should be a leading market index of the country where you get your symbol data (for example, use symbols for the Dow industrials or S&P 500 composite for United States data).
- Help shows a help form.
- Stop halts the computation of the indicator
- Start begins the analysis.
- Done returns you to the Main Form.
For more information on the indicator and what it means, see: http://thepatternsite.com/CPIUpdate.html
Patternz: Splits and Dividends Form
This form is new to version 6.1. Access the form by clicking the Splits/Divs menu option on the Main Form.
The form shows stock splits and dividends for the securities you choose.
- 1. This is the help section.
- 2. Stock files are listed here. Select those you wish to find splits or dividends.
- 3. Results are shown here.
- 4. Select a quote provider.
- 5. Select splits, dividends, or both.
- 6. For a symbol not listed in 2, enter the symbol name here. It need not be a member of the portfolio.
- 7. You may need an API key or token to access the provider (4). Enter the token here. See the associated quote provider for a token/key.
- 8. Most of the buttons are self explanatory. Browse allows you to find the portfolio where stock files reside. Click Portfolio to easily switch from one portfolio to another.
Patternz: Score Form
The Score Form is new to version 6.1. It allows you to score your chart patterns automatically. Chart patterns with scores above 0 tend to outperform those with scores below 0.
Generally, the higher the score, the better the performance. Scores range from +10 (best) to -10 (worst) for both up and down breakouts. Not all chart patterns are scored.
Access the Score Form from the Main Form by highlighting files and clicking the Score button.
This form appears similar to the List Form and the controls have a similar function.
Click the Help button for specific help.
After running a scan on a number of stocks (like that shown above), use the Test button to determine how well the scoring system works for your markets.
It will list the scores and sort the results according to their score for you.
The screen capture on the right (of stocks in the S&P 500 index from 1/2014 to 8/2017) is an example of one such test.
The results are clearest for downward breakouts. For example, there were four chart patterns with scores of 4. Price dropped an average of 28.2% after the breakout (circled in red).
Compare that with nine chart patterns with scores of -8 (circled in blue). They performed less well by dropping an average of 9.2% after the breakout.
Scan down the list of gains (losses, really) for downward breakouts, and it's clear that the higher the score the better the performance (meaning the larger the drop for traders shorting the stock).
DISCLAIMER: The scoring system is a tool to help you select better performing chart patterns, but there is no guarantee. Some patterns will work better than others, regardless of the score. How you trade will determine success or failure. The gains shown on the Score Form represent PERFECT TRADES, so your actual trading results will vary. Past performance doesn't guarantee future results. YOU ALONE ARE RESPONSIBLE FOR YOUR INVESTMENT DECISIONS. Please understand that the Score Form does NOT make recommendations as to which security you should trade.
Patternz: Setup Form
As of version 7.0, this is the Setup Form which you can access from the Chart Form by clicking the Setup button.
- Select either a candlestick or open-high-low-close bar chart.
- These define aspects of the chart's colors. Click one of the five buttons to select a new color (even the black buttons say "Pick", although you can't see it) or Restore Defaults to
return the color settings to the factory presets.
- This limits the number of decimals shown. For currencies, you may wish to change the 2 to a 4 or another value.
- Check the box to show a moving average. When checked, the controls appear where you can select the type of moving average and the length.
- This tells Patternz what to do with quotes which have no volume. Many times, 0 volume is a quote error, but not for mutual funds and maybe other security types. You may wish to chart (or not)
quotes with 0 volume days.
- For gap patterns, this sets the minimum size used to detect a gap.
Patternz: Manual Score Form
The Manual Score Form is new to version 6.6. It's similar to the automated Score Form except that this manual version gives you complete control of the scoring
system and may give a more accurate result. Also, it supports 45 chart patterns. However, it's best for advanced users, ones familiar with chart pattern terms.
Chart patterns with scores above 0 tend to outperform those with scores below 0.
Generally, the higher the score, the better the performance. Scores range from +10 (best) to -10 (worst) for both up and down breakouts.
Access the Manual Score Form from the Main Form menu. You can highlight a stock file you wish to score or do so after the form loads.
The picture shows the score for Apple Computer's double top chart pattern. The two red vertical lines show where the chart pattern starts and ends. The blue line is the breakout day, and
the green line shows where the trend starts.
Follow the steps from the middle left to the lower right.
It helps if the chart pattern you're scoring is in a stock you follow. If so, you can click on the stock from the main form (as described above) or access it using the Browse button on this form
(about midway between numbers 1 and 2 on this figure). Find the location of the stock and click on its name (1). The stock will chart. The chart may or may not show the chart pattern you're
interested in scoring. You can adjust the start and end dates of the chart pattern and then click Graph to update the chart. The chart will add a margin so a year's worth of price data will
be displayed, if available.
Select the chart pattern your interested in scoring from the drop down list (near 1 where it says Pattern). The form shows Double Top, Eve and Eve, as an example.
You can click 2, "Get Existing Pattern's Dates" to automatically fill in the pattern start and end dates (if a chart pattern is shown)(above 3) or you can manually enter the dates yourself.
Alternatively, click on the "Pattern start" text box and then right mouse click on the price bar (on the chart) where the pattern begins. The date of that bar will be pasted into the text field near 3.
The same technique applies to the end and breakout dates as well as the pattern's height and breakout prices (step 1). Fields with red labels use this pasting mechanism. After pasting, the
focus automatically moves to the next field so you can right-mouse click on the next item.
Try it and you'll get the hang of it. You need not chart a stock to be able to score it, but you'll need the various pieces of information that the scoring system requires. Being able to
chart it makes scoring a pattern a lot easier.
Proceed to Step 1: Chart Pattern Height (below 1 on the figure) and fill in the information. If you click "Find 1, 2, 4" and have the start and end dates of the chart pattern graphed, the program will fill
in the appropriate prices. You'll have to enter the breakout price yourself or check the value pasted in earlier. The find button will calculate the height and select short or tall for you based on the
breakout price and pattern height. If you know how to do the calculation (which requires the median height as a percentage of the breakout price) then you can click Short or Tall yourself.
Proceed to Step 2, Yearly Price Range, and so on completing the form through step 11. If you click the Find buttons along the way, the calculation is done for you, making your job easier.
The score is updated along the way, and it appears on the form at 4. This pattern has a -6 score.
Here is more information about the other steps.
- Step 3: Flat Base.
The glossary defines a flat base. "If you know what a rectangle chart pattern looks like, then you know what a flat base is.
Look for a price area in which the stock touches the same value multiple times over several weeks or months. The bottom or top of this area appears flat, hence the name.
Many chart patterns appear at a price just below the base, like a pothole in a road, before price takes off."
- Step 4: Horizontal Consolidation Region.
From the glossary. "Is a congestion area marked by a flat top, flat bottom, (or both), or prices that share a common value. A HCR means any area in which price moves horizontally."
For the scoring system, you're only interesting in a horizontal consolidation region (think support or resistance) in the direction of the breakout, measured from the trend start to the
start of the chart pattern. For example, if the breakout is downward, you'll be looking for a support region (HCR) below the chart pattern and above the trend start (assuming the trend start
is also below the chart pattern).
- Step 5: Trend Start.
From the glossary. "Where the price trend begins, as measured from a major price turning point. To determine the trend start,
look from the beginning of the chart pattern backward in time for the lowest valley or highest peak before which the stock rises or drops, respectively, at least 20%. The lowest low
or highest high represent where the trend starts. Whether to search for the lowest low or highest high, I use whichever drops below or rises above the bottom/top of the chart pattern
first (looking backward in time)." However, I often ignore any overshoot or undershoot that price makes in the two weeks immediately preceding the start of the chart pattern.
The find button on the form works well to locate the trend start. It ungrays after you enter the chart pattern's height. However, the computer stops the search for the trend start
after 6 months because a trend start before that point will be long term.
- Step 6: Market Cap.
Small cap stocks are valued up to $1 billion. Mid caps are between $1 and $5 billion. Large cap stocks are above $5 billion.
- Step 7: Breakout Direction.
If you don't know the breakout direction because price hasn't broken out of the chart pattern yet, select the direction you wish to trade.
- Step 8: Volume Trend.
The Find button employs the slope of a line using linear regression on volume from the start to the end of the chart pattern. Sometimes you can tell the trend just
by looking at the chart's volume between the two vertical red lines (pattern's start and end).
- Step 9: Breakout Day Volume.
Again, the Find button helps with the calculation. If price has not broken out of the chart pattern yet, assume light volume (answer No).
- Step 10: Throwback/Pullback.
A throwback or pullback happens slightly more than half the time after the breakout from a chart pattern.
If no breakout has occurred, assume a throwback or pullback will occur.
- Step 11: Breakout Day Gap.
If price hasn't broken out of the chart pattern yet, then assume a gap will not appear.
DISCLAIMER: The scoring system is a tool to help you select better performing chart patterns, but there is no guarantee. Some patterns will work better than others, regardless of the score. How you trade will determine success or failure. Your actual trading results will vary. Past performance doesn't guarantee future results. YOU ALONE ARE RESPONSIBLE FOR YOUR INVESTMENT DECISIONS. Please understand that the Score Form does NOT make recommendations as to which security you should trade.
Patternz: Relative Strength Form
Momentum traders want to buy stocks with increasing momentum. This form helps find those stocks.
Green cells mean improving performance (higher momentum) from period to period on the same stock. Red cells mean lower performance.
Most of the numbers shown are performance percentages.
For example, Verisign (VRSN) has 4 green cells in the row (3 are shown). End of day closing prices were not available when I made this screen capture,
so cell D is blank. Cell E shows that on 8/18 (Friday, the prior trading day), the stock gained 0.3%. For the week, the stock lost 0.5% (F) compared to the prior week's loss of 1.8% (G). Because -0.5%
is a smaller loss than 1.8%, cell F is green.
Interpret the other cells in a similar manner for periods of day, week, month, 3 months, and 6 months.
To use the form...
- Select stocks you wish to scan in A.
- Select an end date. If you select a holiday or weekend, the date will be changed automatically for the prior trading day.
- Click 'Start' or 'Scan All Portfolios'
- The results will appear in grid B
Click cell C to highlight all rows in the grid. Use this as a quick method for highlighting all rows for the Clipboard (button). Use the Clipboard button when you wish to view the results
in another program, such as Excel or notepad.
To sort the performance, click on one of the header rows. An arrow will appear (circled). Click the cell again and the arrow will reverse and so will the sort.
These cell commands are common to all Patternz grids.
For additional help, click the help button on the form.
-- Thomas Bulkowski
Written by and copyright © 2005-2018 by Thomas N. Bulkowski. All rights reserved. Disclaimer: You alone are responsible for your investment decisions.
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To err is human. To forgive is not company policy.
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