Below is a slider quiz to test your ability to identify inverted ascending scallops and trade them. Captions appear below the pictures in red for guidance, so be sure to scroll down far enough to read them.
1 / 5
The inverted and ascending scallop. This pattern is all over the place but it's not talked about much. Did anyone mention it at your last dinner party? I rest my case.
Look for a straight-line run up at the start followed by a rounded looking retrace at the top of the pattern. The retrace drops price some on the right side, but doesn't come near the
bottom of the pattern. The BAC turn shows an example of the scallop pattern. The pattern resembles an inverted and backward J. Price often retraces 50% or so of the prior up move. Volume trends
downward 70% of the time (which is the case here).
2 / 5
Find as many inverted and ascending scallops as you can. For help, click here.
3 / 5
Here they are, two of them at A and B.
4 / 5
Try once more: Find as many inverted and ascending scallops as you can.
5 / 5
I show three on this chart. One feature of the pattern you should look for is the appearance of them in an uptrend. If you see three of them and they get shorter the higher up the price trend, then the third one might spell the end of the uptrend. But I've also see the reverse, where they get wider as they climb the trend. Either way, it could mean the end of the uptrend.