As of 06/14/2019
  Industrials: 26,090 -17.16 -0.1%  
  Transports: 10,305 -42.06 -0.4%  
  Utilities: 816 +7.97 +1.0%  
  Nasdaq: 7,797 -40.47 -0.5%  
  S&P 500: 2,887 -4.66 -0.2%  
YTD
 +11.8%  
 +12.4%  
 +14.4%  
 +17.5%  
 +15.2%  
  Tom's Targets    Overview: 06/13/2019  
  Up arrow26,800 or 25,400 by 07/01/2019
  Up arrow10,700 or 9,900 by 07/01/2019
  Up arrow830 or 780 by 07/01/2019
  Up arrow8,150 or 7,575 by 07/01/2019
  Up arrow2,950 or 2,800 by 07/01/2019
As of 06/14/2019
  Industrials: 26,090 -17.16 -0.1%  
  Transports: 10,305 -42.06 -0.4%  
  Utilities: 816 +7.97 +1.0%  
  Nasdaq: 7,797 -40.47 -0.5%  
  S&P 500: 2,887 -4.66 -0.2%  
YTD
 +11.8%  
 +12.4%  
 +14.4%  
 +17.5%  
 +15.2%  
  Tom's Targets    Overview: 06/13/2019  
  Up arrow26,800 or 25,400 by 07/01/2019
  Up arrow10,700 or 9,900 by 07/01/2019
  Up arrow830 or 780 by 07/01/2019
  Up arrow8,150 or 7,575 by 07/01/2019
  Up arrow2,950 or 2,800 by 07/01/2019

Bulkowski's Ascending and Inverted Scallops

 

Statistics updated on 3/20/2019.

For more information on this pattern, read Encyclopedia of Chart Patterns Second EditionEncyclopedia of Chart Patterns 2nd Edition book., pictured on the right, pages 639 to 653. That chapter gives a complete review of the chart pattern, compared to what is described below.

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

$ $ $

An inverted and ascending scallop

Ascending and Inverted Scallop Overview

The inverted and ascending scallop looks like the right half of an umbrella. The beauty of this chart pattern is that it performs so well in both bull and bear markets, sporting a low break even failure rate and a large average rise.

Discovered by Thomas Bulkowski in the early 2000's but it may have been uncovered by others earlier.

Important Bull Market Results for Ascending and Inverted Scallops

Overall performance rank (1 is best): not ranked
Break even failure rate: 9%
Average rise: 45%
Throwback rate: 66%
Percentage meeting price target: 64%

The above numbers are based on 1,748 perfect trades. See the glossary for definitions.

Ascending and Inverted Scallop Identification Guidelines

Characteristic Discussion
Price trendMost often you'll see these in an upward trend leading to the pattern or at the bullish turning point of a downward price trend.
ShapeInverted and backward J shape. It looks like the right half of an umbrella. The rise should be a straight, or nearly straight run up, then rounded at the top followed by a small decline.
Smooth topThe peaks should form a rounded turn but larger patterns may not be as smooth.
RetraceThe end of the pattern on the right usually retraces 54% of the prior up move. Avoid 100% retraces.
VolumeTrends downward 70% of the time
ConfirmationThe pattern confirms when price closes above the highest high in the pattern.
 
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Ascending and Inverted Scallop Trading Tips

Consult the associated figures on the right.

Trading Tactic Explanation
Measure ruleCompute the height from the highest peak (B) to the lowest valley in the pattern (A) and then multiply it by the above 'percentage meeting price target.' Add the difference to the highest peak (B) to get a price target C. The link to the left provides more information on the measure rule.
StopIf price drops below the right scallop edge, sell. See the measure rule figure to the right for the proper stop location.
BuyBuy when price closes above the highest peak in the pattern (B).
SwingersSwing traders will want to buy when price bottoms on the right and sell when it climbs to the top of the pattern.
AvoidIf price drops below the start of the pattern (A), then avoid this one.
Avoid valleyIf price forms a distinct right valley and then price drops below the valley, sell. The figure to the right ("New Stop Location") shows the proper location for a stop in this situation.
Breakout volumeHeavy breakout volume suggests better performance. The link shown to the left discusses statistics on breakout volume. The following link gives additional information on other chart patterns that also do well after heavy breakout volume.
Inverted and ascending scallop measure rule
The Measure Rule
Inverted and ascending scallop avoidance
New Stop Location
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Inverted and ascending scallop chart pattern example

Ascending and Inverted Scallop Example

The figure on the right shows an example of an inverted and ascending scallop chart pattern. Price bottoms at point A and then rises to B where it rounds downward to C.

To calculate a price target, subtract the price of valley A from peak B. That finds the height. Multiply the height by 61% (the percentage meeting price target from Important Bull Market Results table near the top of this page) and add the result to the price at B. Place a stop loss order a few pennies below C, and raise the stop as price climbs.

-- Thomas Bulkowski

 

 

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Other Ascending and Inverted Scallop Examples

See Also

Support this site! Clicking any of the books (below) takes you to Amazon.com. If you buy ANYTHING while there, they pay for the referral.
Chart Patterns: After the Buy Getting Started in Chart Patterns, Second Edition Trading Basics Fundamental Analysis and Position Trading Swing and Day Trading Visual Guide to Chart Patterns Encyclopedia of Candlestick Charts Encyclopedia of Chart Patterns 2nd Edition Trading Classic Chart Patterns Bumper's Story Head's Law
Copyright © 2005-2019 by Thomas N. Bulkowski. All rights reserved.
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Some pattern names are registered trademarks of their respective owners.
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