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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 Trendline Mirrors

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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 03/27/2017
20,551 -45.74 -0.2%
8,935 6.33 0.1%
702 -3.50 -0.5%
5,840 11.63 0.2%
2,342 -2.39 -0.1%
YTD
4.0%
-1.2%
6.5%
8.5%
4.6%
Tom's Targets    Overview: 03/14/2017
20,100 or 21,250 by 04/15/2017
8,500 or 9,500 by 04/15/2017
675 or 715 by 04/01/2017
5,950 or 5,650 by 04/15/2017
2,275 or 2,425 by 04/15/2017
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.

Trendline Mirrors: Summary

Trendline mirrors seem to reflect price across a trendline. That's useful when trying to predict how far price will move in the future.

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My book, Trading BasicsTrading Basics: Evolution of a Trader book., shown on the left, covers trendline mirrors starting on page 111.

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

 

$ $ $

Picture of Boeing on the daily scale.

The figure shows an example of a trendline mirror in Boeing on the daily scale.

Notice how the vertical distance at A mirrors the drop to D, not in shape but in extent. The reflection isn't a smooth one, but that's ok. It's the distance that interests us most (well, me, anyway). The BA move upward reflects across the trendline almost exactly to CD.

To use this method, starting from the breakout, C, find the highest distance from the most recent peak to the trendline directly below. That's the AB distance.

From the breakout apply this distance downward to get a price target (the price at C minus the AB distance). That method works 63% of the time. Thus, you can multiply the AB height by 63% and subtract that from the breakout (C) to get a target that price will reach over 90% of the time. Many of you will know this technique as the trendline measure rule. Look for trendline mirrors in finer stores nationwide.

-- Thomas Bulkowski

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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. Worst month of the year for downhill skiing: August, but the lines are shortest.