As of 04/25/2019
  Industrials: 26,462 -134.97 -0.5%  
  Transports: 10,846 -253.37 -2.3%  
  Utilities: 780 +3.53 +0.5%  
  Nasdaq: 8,119 +16.67 +0.2%  
  S&P 500: 2,926 -1.08 0.0%  
YTD
 +13.4%  
 +18.3%  
 +9.5%  
 +22.4%  
 +16.7%  
  Tom's Targets    Overview: 04/12/2019  
  Up arrow26,900 or 25,500 by 05/01/2019
  Up arrow11,200 or 10,500 by 05/01/2019
  Up arrow825 or 755 by 05/01/2019
  Up arrow8,250 or 7,850 by 05/15/2019
  Up arrow2,975 or 2,800 by 05/01/2019
As of 04/25/2019
  Industrials: 26,462 -134.97 -0.5%  
  Transports: 10,846 -253.37 -2.3%  
  Utilities: 780 +3.53 +0.5%  
  Nasdaq: 8,119 +16.67 +0.2%  
  S&P 500: 2,926 -1.08 0.0%  
YTD
 +13.4%  
 +18.3%  
 +9.5%  
 +22.4%  
 +16.7%  
  Tom's Targets    Overview: 04/12/2019  
  Up arrow26,900 or 25,500 by 05/01/2019
  Up arrow11,200 or 10,500 by 05/01/2019
  Up arrow825 or 755 by 05/01/2019
  Up arrow8,250 or 7,850 by 05/15/2019
  Up arrow2,975 or 2,800 by 05/01/2019

Bulkowski's Ascending Scallops

 

Statistics updated on 2/19/2019.

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

If you click on the above link and then buy the book (or anything) while at Amazon.com, the referral will help support this site. Thanks.

-- Tom Bulkowski

$ $ $

Ascending Scallop: Overview

Ascending scallops are arguably the most common chart pattern. They are mid-list performers, but perform better in a bear market.

Important Bull Market Results for Ascending Scallops

Overall performance rank for up/down breakouts (1 is best): Not ranked
Break even failure rate for up/down breakouts: 11%; 23%
Average rise/decline: 42%; 15%
Throwback/pullback rate: 68%; 64%
Percentage meeting price target for up/down breakouts: 62%; 29%

The above numbers are based on hundreds of perfect trades. See the glossary for definitions.

Shown is an ascending scallop chart pattern
Ascending Scallop

Ascending Scallop: Identification Guidelines

CharacteristicDiscussion
Price trendUpward leading to the chart pattern.
ShapeThe chart pattern looks like the letter J. Find two peaks with a rounded valley in between and a higher right peak.
NarrowingScallops tend to be wider near the start of a price trend than near the end.
Breakout, confirmationA close above the highest high signals an upward breakout. Downward breakouts are a close below the pattern's low. A breakout confirms the scallop as a valid chart pattern.
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Ascending Scallop: Trading Tips

Consult the associated figures on the right.

Trading Tactic Explanation Ascending scallop measure rule
The Measure Rule
Ascending scallop with handle buy point
Scallop Handle
Measure ruleCompute the height from the highest peak (A) to the lowest valley in the pattern (B) and then multiply it by the above 'percentage meeting price target.' Add the difference to the highest peak (A) to get a price target for upward breakouts (C) or subtract it from the lowest valley (B) for downward breakouts to get a target price. The link to the left provides more information on the measure rule.
HandleWhen price peaks on the right of the pattern, it often retraces, forming a handle or another scallop. When price bottoms, buy. The figure on the lower right shows an example.
StopPlace a stop below the lowest valley (B in the figure to the upper right) if it's not too far away. The associate link provides more information about stop placement.
Breakout volumeAscending scallops with heavy breakout volume outperform. The link to the left provides more information while this link provides performance information.
Yearly middleUpward breakouts from scallops in the middle third of the yearly price range do best. See the link to the left for more information.
ThrowbackThrowbacks hurt post breakout performance. The link on the left defines a throwback and this link gives performance information.
SeriesAscending scallops in a rising price trend tend to get shorter and narrower as the trend end approaches.
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Ascending scallop chart pattern example

Ascending Scallop: Example

The figure on the right shows an example of an 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 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 if the ascending scallop forms a handle. If no handle appears, a stop below A may be too far away, but consider it. Raise the stop as price rises.

For downward breakouts, subtract the B-A height from A to get a lower target. Ignore targets less than zero.

-- Thomas Bulkowski

 

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Ascending Scallop: Other 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
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Some pattern names are registered trademarks of their respective owners.
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